A family takes out a mortgage for $277,400.00 from the local
bank. The loan is for...
A family takes out a mortgage for $277,400.00 from the local
bank. The loan is for 30 years of monthly payments at a 4.32% APR
(monthly compounding). What will the family’s balance be on the
mortgage after 6.00 years?
A family needs to take out a 30-year home mortgage loan of
$140,000 through a local bank. Annual interest rates for 30-year
mortgages at the bank are 8.1 % compounded monthly.
(a) Compute the family's monthly mortgage payment under this
loan.
(b) How much interest will the family pay over the life of the
loan?
Paul takes out a 15-year loan of 250,000 from his bank. The bank
charges interest at 4% p.a. compounded half-yearly. During the
first 10 years, Paul repays $11,000 at the end of each 6 months.
After that period, Paul will repay $X at the end of each year for
the remaining 5 years. Which of the following can be used to
calculate $X.
You take out a mortgage loan from First Bank of Terlingua with
the following characteristics:compounding period is monthlyloan is for $200,000APR = 6.17%initial maturity is 30 yearsthis mortgage loan has no pointsNow suppose that First Bank allows you to accelerate your loan
payments by paying an additional $100 each month. (We assume that
the bank does not charge a fee for exercising this option.) When we
take the acceleration into account, what is your effective annual
rate?
You take out a mortgage loan from First Bank of Terlingua with
the following characteristics:
-compounding period is monthly
-loan is for $200,000
-APR = 3.91%
-initial maturity is 30 years
-this mortgage loan has no points
Now suppose that First Bank allows you to accelerate your loan
payments by paying an additional $100 each month. (We assume that
the bank does not charge a fee for exercising this option.) When we
take the acceleration into account, what is your...
a borrower takes out a 15 year mortgage loan for 100,000 with an
interest rate of 5% plus 3 points. what is the effective annual
interest rate on the loan if the loan is carried 15 years.
. 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 15-year mortgage loan for $490,000 with
an interest rate of 4.5%. If she wants to pay off the loan after 6
years, what would be the outstanding balance on the loan?
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 5% and monthly payments.
What portion of the first month’s payment would be applied to
Interest?
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?