Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate,...

Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate, fully amortized mortgage and the mortgage rate is 7.0% (APR, monthly).

a. Find the monthly mortgage payment.

b. Compute an amortization schedule for the first six months.

c. What will the mortgage balance be at the end of the 15th year?

d. If an investor purchased this mortgage, what will the timing of the cash flow be assuming that the borrower does not default?

Expert Solution


	Loan Amount	$ 200,000.00
	Interest Rate	7.000%
	Monthly interest	0.00583
	PMT=(Monthly Rate,Number of payments,Loan Amount)
	Monthly Payment	($1,797.21)
	Mortgage Balance at the end of 15 th year is Zero
	Loan Amortization Schedule
	Payment	Interest	Principal	Balance
0				200000.00
1	1797.21	1166.67	630.54	199369.46
2	1797.21	1162.99	634.22	198735.24
3	1797.21	1159.29	637.92	198097.31
4	1797.21	1155.57	641.64	197455.67
5	1797.21	1151.82	645.39	196810.29
6	1797.21	1148.06	649.15	196161.14
7	1797.21	1144.27	652.94	195508.20
8	1797.21	1140.46	656.75	194851.45
9	1797.21	1136.63	660.58	194190.88
10	1797.21	1132.78	664.43	193526.45
11	1797.21	1128.90	668.31	192858.14
12	1797.21	1125.01	672.20	192185.94
13	1797.21	1121.08	676.13	191509.81
14	1797.21	1117.14	680.07	190829.74
15	1797.21	1113.17	684.04	190145.71
16	1797.21	1109.18	688.03	189457.68
17	1797.21	1105.17	692.04	188765.64
18	1797.21	1101.13	696.08	188069.56
19	1797.21	1097.07	700.14	187369.43
20	1797.21	1092.99	704.22	186665.20
21	1797.21	1088.88	708.33	185956.87
22	1797.21	1084.75	712.46	185244.41
23	1797.21	1080.59	716.62	184527.79
24	1797.21	1076.41	720.80	183807.00
25	1797.21	1072.21	725.00	183081.99
26	1797.21	1067.98	729.23	182352.76
27	1797.21	1063.72	733.49	181619.28
28	1797.21	1059.45	737.76	180881.51
29	1797.21	1055.14	742.07	180139.44
30	1797.21	1050.81	746.40	179393.05
31	1797.21	1046.46	750.75	178642.30
32	1797.21	1042.08	755.13	177887.17
33	1797.21	1037.68	759.53	177127.63
34	1797.21	1033.24	763.97	176363.67
35	1797.21	1028.79	768.42	175595.25
36	1797.21	1024.31	772.90	174822.34
37	1797.21	1019.80	777.41	174044.93
38	1797.21	1015.26	781.95	173262.98
39	1797.21	1010.70	786.51	172476.47
40	1797.21	1006.11	791.10	171685.37
41	1797.21	1001.50	795.71	170889.66
42	1797.21	996.86	800.35	170089.31
43	1797.21	992.19	805.02	169284.29
44	1797.21	987.49	809.72	168474.57
45	1797.21	982.77	814.44	167660.13
46	1797.21	978.02	819.19	166840.93
47	1797.21	973.24	823.97	166016.96
48	1797.21	968.43	828.78	165188.18
49	1797.21	963.60	833.61	164354.57
50	1797.21	958.74	838.47	163516.10
51	1797.21	953.84	843.37	162672.73
52	1797.21	948.92	848.29	161824.45
53	1797.21	943.98	853.23	160971.21
54	1797.21	939.00	858.21	160113.00
55	1797.21	933.99	863.22	159249.78
56	1797.21	928.96	868.25	158381.53
57	1797.21	923.89	873.32	157508.21
58	1797.21	918.80	878.41	156629.80
59	1797.21	913.67	883.54	155746.26
60	1797.21	908.52	888.69	154857.57
61	1797.21	903.34	893.87	153963.70
62	1797.21	898.12	899.09	153064.61
63	1797.21	892.88	904.33	152160.28
64	1797.21	887.60	909.61	151250.67
65	1797.21	882.30	914.91	150335.75
66	1797.21	876.96	920.25	149415.50
67	1797.21	871.59	925.62	148489.88
68	1797.21	866.19	931.02	147558.86
69	1797.21	860.76	936.45	146622.41
70	1797.21	855.30	941.91	145680.50
71	1797.21	849.80	947.41	144733.10
72	1797.21	844.28	952.93	143780.16
73	1797.21	838.72	958.49	142821.67
74	1797.21	833.13	964.08	141857.59
75	1797.21	827.50	969.71	140887.88
76	1797.21	821.85	975.36	139912.51
77	1797.21	816.16	981.05	138931.46
78	1797.21	810.43	986.78	137944.68
79	1797.21	804.68	992.53	136952.15
80	1797.21	798.89	998.32	135953.83
81	1797.21	793.06	1004.15	134949.68
82	1797.21	787.21	1010.00	133939.68
83	1797.21	781.31	1015.90	132923.78
84	1797.21	775.39	1021.82	131901.96
85	1797.21	769.43	1027.78	130874.18
86	1797.21	763.43	1033.78	129840.40
87	1797.21	757.40	1039.81	128800.60
88	1797.21	751.34	1045.87	127754.72
89	1797.21	745.24	1051.97	126702.75
90	1797.21	739.10	1058.11	125644.64
91	1797.21	732.93	1064.28	124580.36
92	1797.21	726.72	1070.49	123509.86
93	1797.21	720.47	1076.74	122433.13
94	1797.21	714.19	1083.02	121350.11
95	1797.21	707.88	1089.33	120260.78
96	1797.21	701.52	1095.69	119165.09
97	1797.21	695.13	1102.08	118063.01
98	1797.21	688.70	1108.51	116954.50
99	1797.21	682.23	1114.98	115839.52
100	1797.21	675.73	1121.48	114718.04
101	1797.21	669.19	1128.02	113590.02
102	1797.21	662.61	1134.60	112455.42
103	1797.21	655.99	1141.22	111314.20
104	1797.21	649.33	1147.88	110166.32
105	1797.21	642.64	1154.57	109011.75
106	1797.21	635.90	1161.31	107850.44
107	1797.21	629.13	1168.08	106682.36
108	1797.21	622.31	1174.90	105507.46
109	1797.21	615.46	1181.75	104325.71
110	1797.21	608.57	1188.64	103137.07
111	1797.21	601.63	1195.58	101941.49
112	1797.21	594.66	1202.55	100738.94
113	1797.21	587.64	1209.57	99529.38
114	1797.21	580.59	1216.62	98312.75
115	1797.21	573.49	1223.72	97089.04
116	1797.21	566.35	1230.86	95858.18
117	1797.21	559.17	1238.04	94620.14
118	1797.21	551.95	1245.26	93374.88
119	1797.21	544.69	1252.52	92122.36
120	1797.21	537.38	1259.83	90862.53
121	1797.21	530.03	1267.18	89595.35
122	1797.21	522.64	1274.57	88320.78
123	1797.21	515.20	1282.01	87038.77
124	1797.21	507.73	1289.48	85749.29
125	1797.21	500.20	1297.01	84452.28
126	1797.21	492.64	1304.57	83147.71
127	1797.21	485.03	1312.18	81835.53
128	1797.21	477.37	1319.84	80515.70
129	1797.21	469.67	1327.54	79188.16
130	1797.21	461.93	1335.28	77852.88
131	1797.21	454.14	1343.07	76509.81
132	1797.21	446.31	1350.90	75158.91
133	1797.21	438.43	1358.78	73800.13
134	1797.21	430.50	1366.71	72433.42
135	1797.21	422.53	1374.68	71058.74
136	1797.21	414.51	1382.70	69676.04
137	1797.21	406.44	1390.77	68285.27
138	1797.21	398.33	1398.88	66886.39
139	1797.21	390.17	1407.04	65479.35
140	1797.21	381.96	1415.25	64064.10
141	1797.21	373.71	1423.50	62640.60
142	1797.21	365.40	1431.81	61208.79
143	1797.21	357.05	1440.16	59768.63
144	1797.21	348.65	1448.56	58320.08
145	1797.21	340.20	1457.01	56863.07
146	1797.21	331.70	1465.51	55397.56
147	1797.21	323.15	1474.06	53923.50
148	1797.21	314.55	1482.66	52440.84
149	1797.21	305.90	1491.31	50949.54
150	1797.21	297.21	1500.00	49449.53
151	1797.21	288.46	1508.75	47940.78
152	1797.21	279.65	1517.56	46423.22
153	1797.21	270.80	1526.41	44896.82
154	1797.21	261.90	1535.31	43361.50
155	1797.21	252.94	1544.27	41817.24
156	1797.21	243.93	1553.28	40263.96
157	1797.21	234.87	1562.34	38701.62
158	1797.21	225.76	1571.45	37130.17
159	1797.21	216.59	1580.62	35549.56
160	1797.21	207.37	1589.84	33959.72
161	1797.21	198.10	1599.11	32360.61
162	1797.21	188.77	1608.44	30752.17
163	1797.21	179.39	1617.82	29134.34
164	1797.21	169.95	1627.26	27507.08
165	1797.21	160.46	1636.75	25870.33
166	1797.21	150.91	1646.30	24224.03
167	1797.21	141.31	1655.90	22568.13
168	1797.21	131.65	1665.56	20902.57
169	1797.21	121.93	1675.28	19227.29
170	1797.21	112.16	1685.05	17542.24
171	1797.21	102.33	1694.88	15847.36
172	1797.21	92.44	1704.77	14142.59
173	1797.21	82.50	1714.71	12427.88
174	1797.21	72.50	1724.71	10703.16
175	1797.21	62.44	1734.77	8968.39
176	1797.21	52.32	1744.89	7223.50
177	1797.21	42.14	1755.07	5468.42
178	1797.21	31.90	1765.31	3703.11
179	1797.21	21.60	1775.61	1927.50
180	1797.21	130.29	1927.50	0.00
Total	323497.8	123758.38	200000.00

jeff jeffy answered 10 months ago

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes an APR of 4%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. In the tenth year of your mortgage (months 109 through 120), what would be the total dollar amount of the interest paid? Do not round at intermediate steps in your calculation A) $9,619.05 B)$6,412.70 C)$5,284.99 D)$7,500.27 .

1. Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender...

1. Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes an APR of 4%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. In the tenth year of your mortgage (months 109 through 120), what would be the total dollar amount of the interest paid? Do not round at intermediate steps in your calculation. 2. Suppose that you take out a mortgage loan with the...

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes an APR of 4%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. In the tenth year of your mortgage (months 109 through 120), what would be the total dollar amount of the interest paid? Do not round at intermediate steps in your calculation.

For the following fixed-rate, level-payment mortgage: maturity = 15 years, amount borrowed = 90% of the...

For the following fixed-rate, level-payment mortgage: maturity = 15 years, amount borrowed = 90% of the appraised home value, appraised home value = $500,000, and annual note rate = 6% (a) Construct an amortization schedule for the first 3 months. (b) What will the mortgage balance be at the end of the 15th year assuming no prepayments? (c) Without constructing an amortization schedule, what is the mortgage balance at the end of the 7th year assuming no prepayments? ...

Find the monthly payment for a 25-year fixed-rate loan of $200,000 at 5% annual interest.

Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of...

Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of 10%. What is your total monthly payment? How much of the first month’s payment goes to reduce the size of the loan? If you can afford to pay $2,000 per month, how long would it take you to pay for this loan (still at 10% interest)? If you can only pay $1,700 per month, and still want to finish paying in 30 years, what...

You apply for a 15-year, fixed-rate (APR 4.08%) monthly-payment-required mortgage loan for a house selling for $120,000 today.

You apply for a 15-year, fixed-rate (APR 4.08%) monthly-payment-required mortgage loan for a house selling for $120,000 today. Your bank requires 22% initial down payment of house value (to be paid upfront in cash immediately, thus not included in the loan balance), therefore lends you the remaining 78% of house value as the loan, plus $3,000 application-process-closing cost (to be added into the beginning loan balance and amortized later). (a) What is your monthly loan payment if you...

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is...

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is 3% per year, Compounded annually Compounded monthly Compounded daily What are effective annual rates for 1,2, and 3 above?

Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume...

Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume up front financing cost (includes all costs paid to the lender and third parties except discount points) equal $3,000. Find the EBC if the borrower repays the loan after two years (assuming no direct points). What is the EBC if the lender charges one discount point? What is the EBC if the lender charges 2.5 discount point?

Marcel Thiessen purchased a home for $203,400 and obtained a 15-year, fixed-rate mortgage at 7% after...

Marcel Thiessen purchased a home for $203,400 and obtained a 15-year, fixed-rate mortgage at 7% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied to the principal? (Round your answer to the nearest cent.) interest $ applied to the principal $

Question

Suppose that a 15-year mortgage loan for $200,000 is obtained. The mortgage is a level-payment, fixed-rate,...

Solutions

Expert Solution

Related Solutions

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...

1. Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender...

Suppose that you are considering a conventional, fixed-rate 15-year mortgage loan for $300,000. The lender quotes...

For the following fixed-rate, level-payment mortgage: maturity = 15 years, amount borrowed = 90% of the...

Find the monthly payment for a 25-year fixed-rate loan of $200,000 at 5% annual interest.

Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of...

You apply for a 15-year, fixed-rate (APR 4.08%) monthly-payment-required mortgage loan for a house selling for $120,000 today.

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is...

Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume...

Marcel Thiessen purchased a home for $203,400 and obtained a 15-year, fixed-rate mortgage at 7% after...