Math of Finance You obtain a 150,000 home loan for $25 years at 4.8% interest compounded...

Math of Finance

You obtain a 150,000 home loan for $25 years at 4.8% interest compounded monthly. After 8 years the rate is raised to 6.3% Compute:

a)The new payment if the term of the loan is to remain the same.

b) The term of the loan if the payment remains the same. What is the size of the concluding payment?

DO NOT USE EXCEL TO RESPOND TO THIS QUESTION. Use the appropriate formula and show work instead.

Expert Solution

Colby Messinger answered 2 years ago

You obtain a $95.000 home loan for 15 years at 5.1% interest compounded monthly. If you...

You obtain a $95.000 home loan for 15 years at 5.1% interest compounded monthly. If you made the first payment was made on August 15, 2009, how much interest will be paid in the year 2014?

You have a home loan of $150,000. The interest rate is 5.5% and the loan is...

You have a home loan of $150,000. The interest rate is 5.5% and the loan is for 30 years, with monthly payments. If you make a ONE TIME extra principle payment of $22,000 in period number 18, how much do you SAVE in total interest paid of the life of the loan? A. $22,000 B. $48,814 C. $35,712 D. $61,492

You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments.

You obtain a loan of $150,000 at 5.875% amortized over thirty years with monthly payments. You are required to pay closing costs and fees of 2.0% of the loan amount to the lender. What is the yield of the loan if paid off at the end of 5 years?

You obtain a loan of $150,000 at 5.875% amortized over 30 years with monthly payments. You...

You obtain a loan of $150,000 at 5.875% amortized over 30 years with monthly payments. You are required to pay closing costs and fees of 2% of the loan amount to the lender. What is the yield of the loan if paid off at the end of 5 years?

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%....

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%. The annual property tax bill is $971 and the annual fire insurance premium is $481. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

A 25 year home loan of $125000 at 7.25% compounded monthly is obtained. a. Find the monthly...

A 25 year home loan of $125000 at 7.25% compounded monthly is obtained. a. Find the monthly payments rounded up to the next cent. b. State the total amount of interest paid on the loan assuming that it is kept for 25 years and all payments are the same.

On a $375,000 home loan, you can either finance at 5.6% for 20 or 30 years....

On a $375,000 home loan, you can either finance at 5.6% for 20 or 30 years. Find the monthly payment and the total paid over each loan. Which loan do you pay more interest on. How much more interest is paid? Are you shocked at the difference? need this worked out so i can see every step and formula used

Suppose John takes a 15 year mortgage loan of $150,000 at 4.8% (12). a. What is...

Suppose John takes a 15 year mortgage loan of $150,000 at 4.8% (12). a. What is the monthly payment? b. If he wants to pay off the loan after 10 years, (i.e., on the 120th payment), what is the payoff amount?

Five years ago you borrowed $100,000 to finance the purchase of a $120,000 home. The interest...

Five years ago you borrowed $100,000 to finance the purchase of a $120,000 home. The interest rate on the old mortgage loan is 8 percent. Payments are being made monthly to amortize the loan over 30 years. You have found another lender who will refinance the current outstanding loan balance at 5.5 percent with monthly payments for 30 years. The new lender will charge two discount points on the loan. Other refinancing costs will equal $3,500. There are no prepayment...

The interest rate for the first five years of a $27,000 mortgage loan was 3.25% compounded...

The interest rate for the first five years of a $27,000 mortgage loan was 3.25% compounded semiannually. The monthly payments computed for a 10-year amortization were rounded to the next higher $10. (Do not round intermediate calculations and round your final answers to 2 decimal places.) a. Calculate the principal balance at the end of the first term. Principal balance $ b. Upon renewal at 5.75% compounded semiannually, monthly payments were calculated for a five-year amortization and again rounded...

Question