3. Amortize a $250,000 (Sale Price) house on a 30 year loan at 4.0% annual interest...

3. Amortize a $250,000 (Sale Price) house on a 30 year loan at 4.0% annual interest rate Amortize a $250,000 (Sale Price) house on a 15 year loan at 3.0% annual interest rate (7) What will be the total cost of the 30 year loan? (Total of all Interest & Principle ) (8) What will be the total cost of the 15 year loan? (Total of all Interest & Principle ) (9) At the end of 4 years, how much less will the loan balance of the 15 year mortgage be compared to the 30 year? (10) If you were buying a house at age 30, which loan would you prefer?

Expert Solution

As a 30 year old , it is preferable to opt for the 15 year loan as in early stage of one's career with income earning potential, it is better to payoff the loan early with lesser overall cost compared to the longer tenure loan. Moreover, longer term would put one in EMI trap right through the working years.

Formulae

Formulae as above...

jeff jeffy answered 2 years ago

1. Amortize a $125,000 (Sale Price) house with 20% down payment on a 15 year loan...

1. Amortize a $125,000 (Sale Price) house with 20% down payment on a 15 year loan at 3.0% annual interest rate (1) What is the monthly payment? (2) What month will the debt be less than $50,000? (Assume that you just took out the loan) (3) How much will you pay in interest over the life of the loan?

Loan 3: 15-year versus 30-year mortgage Amortize a mortgage for a $225,000 house with a 20%...

Loan 3: 15-year versus 30-year mortgage Amortize a mortgage for a $225,000 house with a 20% down payment for both a 15-year mortgage at 3.625% and a 30-year mortgage at 4.125%. 15-year mortgage monthly payment? What is the total interest cost over the life of the 15-year loan? 30-year mortgage monthly payment? What is the total interest cost over the life of the 30-year loan? Difference in interest costs between a 15-year and a 30-year mortgage?

Calculate the annual interest rate on a $250,000 loan requiring 25 years to fully amortize with monthly payments of $2,633.06.

A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%...

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%...

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?

Amortize a $35,000 car loan with a 5% annual interest rate and payments for 60 months...

Amortize a $35,000 car loan with a 5% annual interest rate and payments for 60 months (4) What is the monthly payment? (5) What will the balance on the loan be after 2 years of payments? (Assume that you just took out the loan) (6) How many months will it be before the car is halfway paid off?

$200,000 house at 5.0% interest, 30 year loan, the LTV is 90%. Assume that the PMI...

$200,000 house at 5.0% interest, 30 year loan, the LTV is 90%. Assume that the PMI has an upfront premium of 2% and an annual premium of 0.2%. 1. How much is the upfront PMI payment and how much is the monthly PMI payment? 2. How many months you have to pay PMI (when can you call your lender to request drop PMI payment)? 3. How many months your lender have to drop your PMI payment?

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage...

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage interest rate is 4.125%. How much is the monthly payment? How much will the borrower pay in total interest?

For a 30-year loan with a face value of $150,000, 5 percent annual interest, and monthly...

For a 30-year loan with a face value of $150,000, 5 percent annual interest, and monthly payments, find the monthly payment and remaining mortgage balance at the end of years 5, 20, and 30

Richard Miyashiro purchased a condominium and obtained a 30-year loan of $190,000 at an annual interest...

Richard Miyashiro purchased a condominium and obtained a 30-year loan of $190,000 at an annual interest rate of 8.45%. (Round your answers to the nearest cent.) (a) What is the mortgage payment? (b) What is the total of the payments over the life of the loan? (c) Find the amount of interest paid on the mortgage loan over the 30 years.

Question