-You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment andfinance the rest. The mortgage loan you need to borrow lasts 30 years and requires 4.25% interestrate per annum. What is your payment EACH MONTH for the mortgage loan?

A mortgage loan is a loan provided by a bank or lending institution to a borrower for the purpose of…

Answered: You are buying a house priced at…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 15 year mortgage at an interest rate of 5.25%, what will your monthly payments be? Monthly payment =
Calculate the monthly mortgage payments under the following conditions: $325,000 mortgage, 3.125% interest, 30 years. How much interest will you pay for the first month? How much principal will you pay? What is your new loan balance? How much TOTAL do you pay for that mortgage?
You have found your dream house. The selling price is 120,000. You will put $20,000 down and obtain a 25-year fixed-rate mortgage at 8.75% (APR compounded semiannually) for the rest. You plan to prepay the loan by making an additional payment each month along with your regular payment. How much extra must you pay each month if you wish to pay off the load in 20 years? (Assume there is no early payment penalty).
You are offered an add-on loan for $4,500 at 18% for 5 years. What is the monthly payment? What is the amount of interest? What is the true interest rate cost of this loan? If you could pay the same loan above at a compound rate: What would the monthly payment be? What would the amount of interest be? Prepare a monthly payment schedule for each loan above using Excel, and submit it. Suppose that you are only allowed to make a balloon payment to the principal of the compound interest loan. You have $1,000 to put down at the beginning of year three. How many payments will you save?
You take out a 30-year fixed-rate mortgage for $300,000 with an interest rate of 1.2% (APR). What is the monthly payment?
You need a loan of 250000 to buy your first home. The bank offers a 30 year fixed-rate mortgage with an APR of 4.16% or a 15 year fixed-rate mortgage with an APR of 3.22%.What will your monthly payments be for the 30-year mortgage? How much will the total interest be for the 30-year mortgage? What will your monthly payments be for the 15-year mortgage? How much will the total interest be for the 15-year mortgage?
If you are a mortgage lender, what is the most you are willing to lend a borrower today in the following situation: The borrower has promised to pay you $10,500 at the end of each year for 30 years and you want to earn a 5% annual rate of return. Amount the lender is willing to lend:
Suppose you take out a 30 year mortgage for $ 225000 at 6% interest. The monthly payments on this loan are $ 1348.99. If you pay an extra 20% per month on your mortgage, how soon will you pay off the loan?
You get a $350,000 mortgage to buy a condo. If rates are at 6% and you will take thirty year fixed loan, how much will your monthly payments be?
Suppose you take out a 30 year mortgage for $ 250000 at 4% interest. The monthly payments on this loan are $ 1193.54. If you pay an extra 40% per month on your mortgage, how soon will you pay off the loan? How much will you save in interest by making the extra payments? If you put $ 1193.54 per month into an annuity earning 7.25% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years?
You purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down payment (20%). You can get a 30-year mortgage with a 4.0% interest rate. What would be your monthly payment?
You need a 20-year, fixed-rate mortgage to buy a new home for $230,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 240-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $950? Multiple Choice O O $88,924.29 $103.581.46 $386,349.21 $374,758.73 O $401,803.18

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You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment and finance the rest. The mortgage loan you need to borrow lasts 30 years and requires 4.25% interest rate per annum. What is your payment EACH MONTH for the mortgage loan?