Consider a $300,000, 4.50% fixed-rate mortgage, which requires the borrower to make annual payments. If the...

Consider a $300,000, 4.50% fixed-rate mortgage, which requires the
borrower to make annual payments. If the security currently has 23 years remaining until maturity, and is selling to offer a yield-to-maturity of 6%, what is this mortgage’s modified duration

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jeff jeffy answered 2 years ago

Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments. A....

Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments. A. (1 pt) How much of the payment is interest for month 100? B. (1 pt) How much total interest do you pay in the first six years?

You just took a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments, two...

You just took a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments, two discount points. Before you make any payments you receive a nice raise so you plan to pay an extra $160 per month on top of your normal payment. A. (1 pt) How many monthly payments do have to make at the higher payment to fully amortize the loan? B. (1 pt) What is your net interest savings over the life of the loan, assuming...

Consider a 30-year, $300,000 mortgage with monthly payments and a nominal rate (monthly compounding) of 6.50%....

Consider a 30-year, $300,000 mortgage with monthly payments and a nominal rate (monthly compounding) of 6.50%. What portion of the first 35 payments goes toward paying principal? the answer is 15.70% but I don't know how to get the answer with a HP 10bII+ financial calculator, so if possible brake down the steps for me

Consider a $766,200 principal 28 -year mortgage with monthly payments. The annual mortgage rate is 7.40%...

Consider a $766,200 principal 28 -year mortgage with monthly payments. The annual mortgage rate is 7.40% with monthly compounding. Assume that the remaining balance after the 60 th payment is $613,395 . What is the total prepayment made on or before the 5 th anniversary of the mortgage?

What is the monthly mortgage payment on a $300,000 30 year fixed rate mortgage with an...

What is the monthly mortgage payment on a $300,000 30 year fixed rate mortgage with an interest rate of 5.125 percent. A friend who knows you have studied amortization asks your help to find the interest portion of their house payments for tax purposes (assuming they itemize). The monthly payments are $2,107.02 on a 30 year loan with a 5 percent interest rate. a) What was the total amount of interest paid during year 2? b) At what point in...

4. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with annual payments for $135,000...

4. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with annual payments for $135,000 at 5.25%. How much does Ann need to pay annually? 7. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $135,000 at 5.25%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)?

A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The...

A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The loan will be $200,000 at 6% interest for 20 years. How would you analayze these alternatives?

A borrower is making a choice between a mortgage with a monthly payments or biweekly payments....

A borrower is making a choice between a mortgage with a monthly payments or biweekly payments. The loan will be $150,000 at 8% interest for 25 years. How much will he save if he uses biweekly payments?

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If...

Consider a mortgage loan of $300,000, to be amortized over thirty years with monthly payments. If the annual percentage rate on this mortgage is 4% : What is the monthly payment on this loan? What is the balance of this loan AFTER the 14th payment is made? How much of the 8th payment is allocated to interest? How much of the 19th payment is allocated to principal?

What is the effective cost of a $300,000 fixed rate mortgage loan at 5.0% for 30...

What is the effective cost of a $300,000 fixed rate mortgage loan at 5.0% for 30 years if the lender charges two points? Assume the loan is held until maturity. Select one: a. 5.33% b. 5.0% c. 5.25% d. 5.18%

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