In: Finance

3. A borrower has a 30-year mortgage loan for $200,000 with an
interest rate of 5% and monthly payments. If she wants to pay off
the loan after 8 years, what would be the outstanding balance on
the loan?

(A) $84,886

(B) $91,246

(C) $171,706

(D) $175,545

EMI = Loan amount / PVAF (r%, n)

where r is int rate per month and n is no. of months

= $ 200,000 / PVAF (0.4167%, 360)

= $ 200,000 / 186.2816

= 1073.64

**Loan Amortization:**

I have broken the excel sheet into 3 pictures as I couldn't able to take one pic

Thus after 96 months ( 8 years) closing balance in Loan amortization is $ 171,706

A borrower has a 30-year mortgage loan for $200,000 with an
interest rate of 6% and monthly payments. If she wants to pay off
the loan after 8 years, what would be the outstanding balance on
the loan? (D)
$84,886
$91,246
$146,667
$175,545
Not enough information
Please explain me the step on financial calculator. The answer
is D

. A borrower takes out a 30 - year adjustable rate mortgage loan
for $200,000 with monthly payments. The first two years of the loan
have a “teaser” rate of 4%, after that, the rate can reset with a
2% annual rate cap. On the reset date, the composite rate is 5%.
What would the Year 3 monthly payment be?
(A) $955
(B) $1,067
(C) $1,071
(D) $1,186
(E) Because of the rate cap, the payment would not change.

A borrower takes out a 30-year mortgage loan for $250,000 with
an interest rate of 5% and monthly payments.
What portion of the first month’s payment would be applied to
Interest?

Case: A borrower received a 30-year ARM mortgage loan for
$200,000. Rate caps are 3/2/6. The start rate is 3.50% and the loan
adjusts every 12 months for the life of the mortgage. The index
used for this mortgage is LIBOR (for this exercise, 3.00% at the
start of the loan, 4.45% at the end of the first year, and 4.50% at
the end of the second year). The margin on the loan is 3.00%, which
remains the same for...

A borrower takes out a 30-year adjustable rate mortgage loan for
$200,000 with monthly payments. The first two years of the loan
have a "teaser" rate of 2%, after that, the rate can reset with a
7% annual payment cap. On the reset date, the composite rate is 6%.
Assume that the loan allows for negative amortization. What would
be the outstanding balance on the loan at the end of Year 3?

A borrower takes out a 30-year adjustable rate mortgage loan for
$200,000 with monthly payments. The first two years of the loan
have a “teaser” rate of 4%, after that, the rate can reset with a
5% annual payment cap. On the reset date, the composite
rate is 6%. What would the Year 3 monthly payment be? with the way
please.

A borrower takes out a 30-year mortgage loan for $100,000 with
an interest rate of 6% plus 4 points. Payments are to be made
monthly.
a. What is the effective cost of borrowing on the loan if the
loan is carried for all 30 years?
b. What is the effective cost of borrowing on the loan if the
loan is repaid after 10 years?

A borrower takes out a 30-year mortgage loan for $250,000 with
an interest rate of 6% and monthly payments. What portion of the
first month's payment would be applied to interest? ($1250) Assume
the question above was a negative amortization loan, what would be
the balance after 3 years?

4. A borrower takes out a 30-year mortgage loan for $100,000
with an interest rate of 6% plus 2 points. What is the effective
annual interest rate on the loan if the loan is carried for all 30
years?
(A) 6.0%
(B) 6.2%
(C) 6.4%
(D) 6.6%

A borrower has a 23-year mortgage loan for $464,103 with an
interest rate of 6% and monthly payments. If she wants to pay off
the loan after 9 years, what would be the outstanding balance on
the loan?

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