You are considering a thirty-year home loan of $400,000. A prospective lender has quoted an APR of 3.75% (compounded monthly) plus two points. A "point" is one percent of the loan's amount and is deducted from the loan proceeds. Thus, for a $100,000 loan, the lender would only give you $99,000 if the lender charged one point. However, your monthly payment would still be based on the entire $100,000 amount. 1. What would be the amount of your monthly payment on this loan? а. b. How much would the lender actually give you on this loan?

Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 7.9%. The annual property tax bill is $967 and the annual fire insurance premium is $498. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Consider a 30-year fixed-rate home loan of $565,500 with an interest rate of 4.25%.What is the total amount of interest paid? (Round your answer to the nearest cent.)

A lender requires PMI that is 0.8% of the loan amount of $590,000. How much (in dollars) will this add to the borrower’s monthly payment? Round your answer to the nearest cent.

Suppose your gross monthly income is $5,300 and your current monthly payments are $575. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.)

You are purchasing a home for $ 395,000. The loan requires a down payment of 15% of the purchase price. There are no other fees. The rest will be borrowed through a 7.35% (CIA ) amortized loan with annual payments for 20 years. What will the annual payment be on the loan?

The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%, thirty-year simple interest amortized loan at 8 and 1/4% interest, with an APR of 9.23%. Use the APR to approximate the fees included in the finance charge. (Round your answer to the nearest cent.)

A house price of $100,000 can be financed with two loans below with monthly payments. The total origination cost associated with these two loans is $2,000.   Loan Amount Term (years) Interest Rate 1st loan $ 80,000 30 5% 2nd loan $ 10,000 30 7% Alternatively, the borrower can borrow one loan in the amount of $90,000 with origination cost of $1,500. What should the interest rate be on the $90,000, 30 years loan with monthly payments so that the borrower will be indifferent between these two alternatives? 4.28% 5.28% 6.28% 7.28%

Suppose Mary Grace needs to borrow $8,900 for the purchase of a car and is considering two loan options. Loan A is a four-year loan at 7.6% interest while loan B is a seven-year loan at 7.9% interest.Determine the monthly payment required to repay Loan A and the total interest paid over the life of Loan A. Round solutions to the nearest cent, if necessary.The monthly payment for Loan A is $ .The total interest paid for Loan A is $ .Determine the monthly payment required to repay Loan B and the total interest paid over the life of Loan B. Round solutions to the nearest cent, if necessary.The monthly payment for Loan B is $ .The total interest paid for Loan B is $ .Determine the lower-cost option of the two loans. Loan A is the lower-cost option. Loan B is the lower cost option. Determine the amount of savings Mary Grace will experience if she chooses the lower-cost loan option.Savings = $  Hint: Related FormulaThe loan payment formula for fixed installment loans is given by the…

You plan to borrow $47,000 at a 7.5% annual rate. The terms require you to amortize the loan with 7 equal end of year payments. How much interest would you be paying in year 4?