In: Finance

Assume that 8 years ago you borrowed $200,000 as a 30-year mortgage on your home with an annual percentage rate of 7% at monthly payments (12 payments per year). You plan to refinance this mortgage with a new 30 year low at the current rate of 5%.

a. What is the monthly payment of the original mortgage.

b. How much do you still owe of the original principal after seven years? (Hint: for a loan that is amortized, like a mortgage, the amount you still owe at any time is the present value of the remaining payments that have not yet been made).

c. How much money can you borrow now at the new interest rate if you keep the same monthly payments as the original mortgage?

Assume that 8 years ago you borrowed $200,000 as a 30-year
mortgage on your home with an annual percentage rate of 7% at
monthly payments (12 payments per year). You plan to refinance this
mortgage with a new 30 year low at the current rate of 5%.
a. What is the monthly payment of the original mortgage.
b. How much do you still owe of the original principal after
seven years? (Hint: for a loan that is amortized, like a...

Bubba bought his house 20 years ago, he is borrowed $200,000
with a 30-year mortgage with a 5.0% APR. His mortgage broker has
offered him a 10-year mortgage with a 4% APR with 3 points closing
costs. What is Charlie's old monthly payment? What is the balance
on Bubba's mortgage? What is Bubba's new monthly payment? What are
Bubba's present value savings after paying the points if he plans
to live in the house until the mortgage is paid off?

You purchased a home 6 years ago using a 4% 30-year mortgage
with a monthly payment of $1072.25. Assuming you want to pay off
your mortgage today, how much would you have to pay the lender in
order to pay off the outstanding balance on your mortgage loan?
Round to the nearest dollar.

The Frugals buy a home and assume a $190,000 30-year mortgage @
j (12) = 8 %.
They decide to amortize the debt quicker, and they pay an extra
$400 toward
principal each month. How long will it take them to retire their
mortgage?
Assuming the Frugals continue to pay down their mortgage at the
rate calculated
just above, how much interest will they be able to write-off for
income tax
purposes in the 7 th year of their loan?...

The Frugals buy a home and assume a $190,000 30-year mortgage @
j (12) = 8 %.
They decide to amortize the debt quicker, and they pay an extra
$400 toward
principal each month. How long will it take them to retire their
mortgage?

Suppose you borrowed $200,000 for a home mortgage on January 1,
2015 with an annual interest rate of 6% per year. The balance on
the mortgage is amortized over 30 years with equal monthly payments
at the end of each month. (This means the unpaid balance on January
1, 2045 should be $0).
a) What are the monthly payments?
(b) How much interest was paid during the 30 years of the
mortgage?
(c) What is the unpaid balance on the...

Assume Sam borrowed $120,000 for a home mortgage, to be repaid
at 8% interest over 3 years with monthly payments.
How many monthly payments does Sam has to pay for 3 year?
How much is the monthly payment?
How much is the interest payment for the third month?
How much interest is paid over the life of the loan?
Hint:
Annual percentage rate (APR) = ??
Monthly discount rate (rate) = ??
Number of payment (Nper) = ??
Monthly payment...

You purchased your home 6 years ago. At this time, you took out
a mortgage for $200,000, for 30 years, with a fixed rate of 5%. You
have made all payments on time but have paid nothing extra on the
mortgage. Suppose you sell the house for $210,000 and pay a 6%
commission. How much money will you receive (or have to pay) after
you pay off your loan?
Solve using a financial calculator.

1. You need a 20-year,
fixed-rate mortgage to buy a new home for $200,000. Your mortgage
bank will lend you the money at a 7 percent APR for this 240-month
loan. However, you can afford monthly payments of only $800, so you
offer to pay off any remaining loan balance at the end of the loan
in the form of a single balloon payment.
Required:
How large will this
balloon payment have to be for you to keep your monthly...

Suppose you currently have 25 years remaining on a mortgage that
started as a $200,000, 30-year 6% mortgage. Your current balance is
$186,108.71. Your current payment (including both principal and
interest) is $1,199.10. Ignoring closing costs, evaluate whether
you should refinance into a 30-year 5%mortgage or a 15-year 4%
mortgage. Determine the following for both alternatives:
a. What would be the new monthly payment assuming you refinance
the existing balance of $186,108.71?
b. What would be the total accumulated interest...

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