Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded...

Seven years ago, Carlos took out a mortgage for $185,000 at an annual 5.6 percent, compounded monthly, for 30 years. He has made all of the monthly payments as agreed.

a) What is his monthly mortgage payment?

b) What is his current loan balance?

Expert Solution

Ans a) $ 1062.05

b) $164,621.06

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods

	P =	r (PV)
		1 - (1 + r )^-n

	P =	(5.6%/12)*185000
		1 - (1 / (1 + 5.60%/12)^360))

	P =	863.3333333
		0.812896278

	P =	1062.05



	Beginning Balance	Interest	Principal	Ending Balance
1	$185,000.00	$863.33	$198.71	$184,801.29
2	$184,801.29	$862.41	$199.64	$184,601.65
3	$184,601.65	$861.47	$200.57	$184,401.08
4	$184,401.08	$860.54	$201.51	$184,199.57
5	$184,199.57	$859.60	$202.45	$183,997.12
6	$183,997.12	$858.65	$203.39	$183,793.73
7	$183,793.73	$857.70	$204.34	$183,589.38
8	$183,589.38	$856.75	$205.30	$183,384.09
9	$183,384.09	$855.79	$206.25	$183,177.84
10	$183,177.84	$854.83	$207.22	$182,970.62
11	$182,970.62	$853.86	$208.18	$182,762.44
12	$182,762.44	$852.89	$209.15	$182,553.28
Year #1 End
13	$182,553.28	$851.92	$210.13	$182,343.15
14	$182,343.15	$850.93	$211.11	$182,132.04
15	$182,132.04	$849.95	$212.10	$181,919.94
16	$181,919.94	$848.96	$213.09	$181,706.86
17	$181,706.86	$847.97	$214.08	$181,492.77
18	$181,492.77	$846.97	$215.08	$181,277.70
19	$181,277.70	$845.96	$216.08	$181,061.61
20	$181,061.61	$844.95	$217.09	$180,844.52
21	$180,844.52	$843.94	$218.11	$180,626.41
22	$180,626.41	$842.92	$219.12	$180,407.29
23	$180,407.29	$841.90	$220.15	$180,187.15
24	$180,187.15	$840.87	$221.17	$179,965.97
Year #2 End
25	$179,965.97	$839.84	$222.20	$179,743.77
26	$179,743.77	$838.80	$223.24	$179,520.53
27	$179,520.53	$837.76	$224.28	$179,296.24
28	$179,296.24	$836.72	$225.33	$179,070.91
29	$179,070.91	$835.66	$226.38	$178,844.53
30	$178,844.53	$834.61	$227.44	$178,617.09
31	$178,617.09	$833.55	$228.50	$178,388.59
32	$178,388.59	$832.48	$229.57	$178,159.03
33	$178,159.03	$831.41	$230.64	$177,928.39
34	$177,928.39	$830.33	$231.71	$177,696.68
35	$177,696.68	$829.25	$232.79	$177,463.88
36	$177,463.88	$828.16	$233.88	$177,230.00
Year #3 End
37	$177,230.00	$827.07	$234.97	$176,995.03
38	$176,995.03	$825.98	$236.07	$176,758.96
39	$176,758.96	$824.88	$237.17	$176,521.79
40	$176,521.79	$823.77	$238.28	$176,283.51
41	$176,283.51	$822.66	$239.39	$176,044.12
42	$176,044.12	$821.54	$240.51	$175,803.61
43	$175,803.61	$820.42	$241.63	$175,561.98
44	$175,561.98	$819.29	$242.76	$175,319.23
45	$175,319.23	$818.16	$243.89	$175,075.34
46	$175,075.34	$817.02	$245.03	$174,830.31
47	$174,830.31	$815.87	$246.17	$174,584.14
48	$174,584.14	$814.73	$247.32	$174,336.82
Year #4 End
49	$174,336.82	$813.57	$248.47	$174,088.34
50	$174,088.34	$812.41	$249.63	$173,838.71
51	$173,838.71	$811.25	$250.80	$173,587.91
52	$173,587.91	$810.08	$251.97	$173,335.94
53	$173,335.94	$808.90	$253.15	$173,082.80
54	$173,082.80	$807.72	$254.33	$172,828.47
55	$172,828.47	$806.53	$255.51	$172,572.96
56	$172,572.96	$805.34	$256.71	$172,316.25
57	$172,316.25	$804.14	$257.90	$172,058.35
58	$172,058.35	$802.94	$259.11	$171,799.24
59	$171,799.24	$801.73	$260.32	$171,538.92
60	$171,538.92	$800.51	$261.53	$171,277.39
Year #5 End
61	$171,277.39	$799.29	$262.75	$171,014.64
62	$171,014.64	$798.07	$263.98	$170,750.66
63	$170,750.66	$796.84	$265.21	$170,485.45
64	$170,485.45	$795.60	$266.45	$170,219.01
65	$170,219.01	$794.36	$267.69	$169,951.32
66	$169,951.32	$793.11	$268.94	$169,682.38
67	$169,682.38	$791.85	$270.20	$169,412.18
68	$169,412.18	$790.59	$271.46	$169,140.72
69	$169,140.72	$789.32	$272.72	$168,868.00
70	$168,868.00	$788.05	$274.00	$168,594.01
71	$168,594.01	$786.77	$275.27	$168,318.73
72	$168,318.73	$785.49	$276.56	$168,042.17
Year #6 End
73	$168,042.17	$784.20	$277.85	$167,764.32
74	$167,764.32	$782.90	$279.15	$167,485.18
75	$167,485.18	$781.60	$280.45	$167,204.73
76	$167,204.73	$780.29	$281.76	$166,922.97
77	$166,922.97	$778.97	$283.07	$166,639.90
78	$166,639.90	$777.65	$284.39	$166,355.51
79	$166,355.51	$776.33	$285.72	$166,069.79
80	$166,069.79	$774.99	$287.05	$165,782.73
81	$165,782.73	$773.65	$288.39	$165,494.34
82	$165,494.34	$772.31	$289.74	$165,204.60
83	$165,204.60	$770.95	$291.09	$164,913.51
84	$164,913.51	$769.60	$292.45	$164,621.06
Year #7 End

jeff jeffy answered 10 months ago

Six years ago you took out a $220,000, 15-year mortgage with an annual interest rate of...

Six years ago you took out a $220,000, 15-year mortgage with an annual interest rate of 6% compounded monthly. i. Estimate your monthly payments on the mortgage. ii. Compute the outstanding balance on your current loan if you have just made the 72th payments?

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of...

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of 6 percent and monthly payments of $2,398.20. What is the outstanding balance on your current loan if you just make the 96th payment?

A couple took out a 30-year mortgage 10 years ago. At that time, the mortgage was...

A couple took out a 30-year mortgage 10 years ago. At that time, the mortgage was $306,800.00, with 7.44% APR and monthly compounding of interest. Today, the couple has been offered $327,700.00 for their house. If the couple accepts the offer, how much cash will they take from the deal? The cash will be the difference between the sell price and what is owed on the loan.

Two years ago you took out a mortgage at 4.5%. The initial balance of the loan...

Two years ago you took out a mortgage at 4.5%. The initial balance of the loan was $200,000 and it was for 25 years (300 months.) Today, you observe that you could take out a new loan at 4.25% (with a 300 month term), but you would have to pay $5,000 in closing and other fees. What is the current value of the loan (liability from your perspective)? *Note: The answer is $195,579.52. I want to know how to get...

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for...

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years. Now that interest rates have fallen (beginning of year 4 of your current mortgage), you are considering refinancing your existing loan with a new 30 year loan. Your new loan must pay off the remaining balance of your old loan plus pay for all of the fees, associated with the new loan. In addition to all of the standard fees, you choose...

You purchased your home 6 years ago. At this time, you took out a mortgage for...

You purchased your home 6 years ago. At this time, you took out a mortgage for $200,000, for 30 years, with a fixed rate of 5%. You have made all payments on time but have paid nothing extra on the mortgage. Suppose you sell the house for $210,000 and pay a 6% commission. How much money will you receive (or have to pay) after you pay off your loan? Solve using a financial calculator.

10-years ago, you took out a 30-year mortgage with an APR of 6.5% for $430,000. If...

10-years ago, you took out a 30-year mortgage with an APR of 6.5% for $430,000. If you were to refinance the mortgage today for 20 years at an APR of 4.25%, how much would your monthly payment change by? Please explain how to solve step-by-step

Five years ago I took out a 30-year fixed $300,000 mortgage withmonthly payments and an...

Five years ago I took out a 30-year fixed $300,000 mortgage with monthly payments and an APR of 8%, compounded monthly. I have made the normal payments in full, and, this morning, after making a normally scheduled payment, I are paying off the balance by taking out a new 30-year fixed mortgage at a lower APR of 6% (with monthly compounding). How much will each monthly payment be?

Five years ago you took out a 30-year fixed $300,000 mortgage with monthly payments and an...

Five years ago you took out a 30-year fixed $300,000 mortgage with monthly payments and an APR of 8%, compounded monthly. You have made the normal payments in full, and, this morning, after making a normally scheduled payment, you are paying off the balance by taking out a new 30-year fixed mortgage at a lower APR of 6% (with monthly compounding). How much will each monthly payment be?

When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage...

When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage with a 30 year ARM at 5%. Today is the five year anniversary and the rate adjusts to 10%. What is your new mortgage payment?

Question