Question

In: Finance

A home is purchased for $134550. The homeowner pays $26910 down and finances the balance for...

A home is purchased for $134550. The homeowner pays $26910 down and finances the balance for 20 years at 8% compounded monthly.

a. Find the size of the payments rounded up to the next cent.
I calculated it to be 900.34, but it is wrong.

b. How much is owed just before the 95 payment is actually made?
I calculated it to be 23778.88 but it's also wrong.

Just after 95 payments are made, the loan is refinanced at 6.5% compounded monthly.

c. If the duration of the original loan remains the same, find the size of the new payments rounded up to the next cent.

d. If money is worth 5.25% compounded monthly to the homeowner, what is the present value of the savings in interest at the time of refinancing?

e. If the homeowner continues with the original payments, find the number of full payments required to pay off the loan.
full payments

f. Find the size of the smaller concluding payment at the end of the next month.

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A home is purchased for $169050. The homeowner pays $33810 down and finances the balance for...
A home is purchased for $169050. The homeowner pays $33810 down and finances the balance for 25 years at 7.25% compounded monthly. a. Find the size of the payments rounded up to the next cent. $ b. How much of the first payment is interest? $ c. How much is still owed on the loan just after 140 payments. $ d. What is the owner's equity after 140 payments? $ e. How much is owed just before the 140 payment...
A home is purchased for $134550. The homeowner pays $26910 down and finances the balance for...
A home is purchased for $134550. The homeowner pays $26910 down and finances the balance for 20 years at 8% compounded monthly. a. Find the size of the payments rounded up to the next cent. $   b. How much of the first payment is interest? $   c. How much is still owed on the loan just after 95 payments. $   d. What is the owner's equity after 95 payments? $   e. How much is owed just before the 95 payment...
A home is purchased for $153200. The homeowner pays $30640 down and finances the balance for...
A home is purchased for $153200. The homeowner pays $30640 down and finances the balance for 30 years at 7.5% compounded monthly. a. Find the size of the payments rounded up to the next cent. b. How much of the first payment is interest? c. How much is still owed on the loan just after 110 payments. d. What is the owner's equity after 110 payments? e. How much is owed just before the 110 payment is actually made? Just...
Jackson is buying a house for $187,000. He puts 20% down then finances the balance for...
Jackson is buying a house for $187,000. He puts 20% down then finances the balance for 30 years at 2.75% interest. The monthly homeowners association dues are $115 per month. Home insurance totals $1712 per year, and annual taxes are $2740. Assuming home owner association fees, taxes and insurance are added monthly to the total house payment, find the total monthly amount that Jackson will pay for the house.
Jackson is buying a house for $244,000. He puts 20% down then finances the balance for...
Jackson is buying a house for $244,000. He puts 20% down then finances the balance for 30 years at 4.75% interest. The monthly homeowners association dues are $135 per month. Home insurance totals $1842 per year, and annual taxes are $3120. Assuming home owner association fees, taxes and insurance are added monthly to the total house payment, find the total monthly amount that Jackson will pay for the house.
Using excel! Hagrid buys a home for $230,000 and put $19000 down.  He finances the rest at...
Using excel! Hagrid buys a home for $230,000 and put $19000 down.  He finances the rest at 6% for 30 years.   If he refinances after 8 years at 3.95% how much will he save assuming he pays the original amount the whole time? How many years total does it take to pay off the loan?
Using excel! Snape buys a home for $450000 and puts $50000 down.  He finances the rest at...
Using excel! Snape buys a home for $450000 and puts $50000 down.  He finances the rest at 5.4% for 30 years.  He begins paying an extra $700 per month after 5 years How much will he end up saving? When will it be paid off assuming he purchased the home June 1, 1999?
Using Excel! Professor McGonagall buys a home for $129,000 and puts $15000 down.  She finances the rest...
Using Excel! Professor McGonagall buys a home for $129,000 and puts $15000 down.  She finances the rest for 30 years at 4.25% If she refinances after 5 years at 3.9%, how much will she save assuming she keeps paying the original amount?
Kari is purchasing a home for $220,000. The down payment is 25% and the balance will...
Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed with a year mortgage at 8% and 4 discount points. Kari made a deposit of $30,000 (applied to the doen payment) when the sales contract was signed. Kari also has three expenses: credit report, $70; appraisal fee, $110; title insurance premium, 1% of amount financed; title search, $200; and attorney's fees, $500. Find the closing costs (in $).
A home is purchased for 395,000 with a 10% down payment and a 30 year amortized...
A home is purchased for 395,000 with a 10% down payment and a 30 year amortized mortgage charging 3.6% compounded monthly find: a) the amount borrowed, b) the size of the monthly mortgage payment and c) the total interest paid over 30 years?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT