You want to buy a $153,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at5.25% interest for the rest.a) How much is the loan amount going to be?$b) What will your monthly payments be?$c) How much total interest do you pay?$d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be?$e) How much money in interest will you save if you finance for 15 years instead of 30 years?$

Given:cost of home=$153,000down payment=5%rate=5.25%time =30

You want to buy a $153,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 5.25% interest for the rest. a) How much the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) $ pose you want to pay off the loan in 15 years rather than 30. What will your monthly e) How much money in interest will you save if you finance for 15 years instead of 30 years? $ be?

You want to buy a $153,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 5.25% interest for the rest. a) How much the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) $ pose you want to pay off the loan in 15 years rather than 30. What will your monthly e) How much money in interest will you save if you finance for 15 years instead of 30 years? $ be?

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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You want to buy a $243,000 home. You plan to pay 10% as a down payment, and take out a loan with a rate of 8% for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if you have a 30-year loan? $ c) What will your monthly payments be if you have a 15-year loan? $ d) What is the total amount paid to the bank over the 30-years? $ e) Whatis the total amount paid to the bank over the 15-years? $ f) Find the total interest paid for the 30-year loan. $ g) Find the total interest paid for the 15-year loan. $
i’ve tried so many times and keep getting the answer wrong, i can’t figure out the right answer
i’m so lost on how to do this problem
You want to buy a $215,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be if the interest rate is 6%? c) What will your monthly payments be if the interest rate is 7% ?
You want to buy a $169,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.85% interest for the rest. a) How much is the loan amount going to be? $ b) What will your monthly payments be? $ c) How much total interest do you pay? $ d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $ e) How much money in interest will you save if you finance for 15 years instead of 30 years? $
3. Suppose we need to borrow $150,000 at an APR of 6% to buy a new house. a. What will be the monthly payment if we borrow the money for 15 years? b. How much interest will we have paid by the end of the loan? c. What is the monthly payment if you were to borrow the money for 25 years? With that being said, how much interest will you have paid at the end of the 25 year loan?
You are thinking of purchasing a house. The house costs $ 431,000. You have $ 45,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 20-year mortgage that requires annual payments and has an interest rate of 4 % per year. What will be your annual payment if you sign this mortgage?
You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)
A borrower is purchasing a property for $200,000 and can choose between two possible loan alternatives. Loan A is a 90% loan for 25 years at 8% interest and 2 points and Loan B is a 95% loan for 25 years at 8.75% interest and 1 point. Assume the loans will be held to maturity, what is the incremental cost of borrowing the extra money? Assume that the loans will be repaid in 5 years. What is the incremental cost of borrowing the extra money? Rework parts (a) and (b) assuming the lender is charging 3 points on Loan A and 2 point on Loan B. What is the incremental cost of borrowing?
A borrower is purchasing a property for $1,800,000 and can choose between two possible loan alternatives. The first is a 75% loan for 25 years at 9% interest and 1 point and the second is an 80% loan for 25 years at 9.25% interest and 1 point. Assume the loan term will be 5 years. What is the incremental cost of borrowing the extra money?
You want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan for the rest. How much is the loan going to be? What will the monthly payments be if the interest rate 5%? What will the monthly payments be if the interest rate is 6%?
Suppose you take out a 30 year mortgage for $ 250000 at 6.75% interest. The monthly payments on this loan are $ 1621.50. 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?

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