Question
In: Finance
(1 point) A couple purchases a house and signs a mortgage contract for $480000 to be...
(1 point) A couple purchases a house and signs a mortgage
contract for $480000 to be paid with monthly payments over 30
years. The interest rate of the mortgage is j1 = 15% and can be
renegotiated every 5 years without penalty. At the end of the 5th
year they refinance the loan at j1 = 12%. Calculate the initial
monthly payment and the payment after the mortgage is refinanced.
Also determine the value of the savings for the 2nd 5-year period
with the new payment, and the outstanding balance of the mortgage
at the end of 10 years.
Initial Payment:
Refinanced Payment:
Savings:
Outstanding Balance ：
Solutions
Expert Solution
Please comment in case of any doubts or clarifications.
jeff jeffy answered 2 years agoRelated Solutions
Edward signs a 30 year mortgage at 3.5% compounded monthly. The price of his house is...
Edward signs a 30 year mortgage at 3.5% compounded monthly. The
price of his house is $200,000. He makes a down payment of 40,000.
Answer the following:
What will be his monthly payments?
After 5 years, he makes a one-time payment of $50,000 (against
the remaining principle). How many months will he have remaining on
his mortgage? To avoid any confusion, he will have exactly 25 years
remaining before he makes the $50,000 in payment.
Edwards decides that instead of...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point" (1.0 % of the total amount of the loan) to
reduce your APR from 6.24% to 5.99% on your $409,000, 30-year
mortgage with monthly payments. If you plan to be in the house for
at least five years, should you do it? (Note: Be careful not to
round any intermediate steps less than six decimal places.)
The monthly mortgage payment at 6.24% APR is...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house
and the mortgage company offers to let you pay a "point" (1.0 %
of the total amount of the loan) to reduce your APR from 5.96 % to
5.71 %
on your $429,000,
3030-year mortgage with monthly payments. If you plan to be in the
house for at least five years, should you do it?
The PV of the monthly
savings is $
The balance of the
mortgage at the end of five years at...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point"
(1.0 %
of the total amount of the loan) to reduce your APR from
6.46 %
to
6.21 %
on your
$ 403 comma 000
,
30
-year
mortgage with monthly payments. If you plan to be in the house
for at least five years, should you do it? (Note: Be careful not
to round any intermediate steps less than six decimal places.)
The...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point" 1.0% of the total amount of the loan) to reduce
your APR from 5.88% to 5.63% on your $419,000, 30-year mortgage
with monthly payments. If you plan to be in the house for at least
five years, should you do it? (Note: Be careful not to round any
intermediate steps less than six decimal places.)
The monthly mortgage payment at 5.88% APR is $_...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point" (1.0 % of the total amount of the loan) to
reduce your APR from 6.50 % to 6.25 % on your $ 400000, 30-year
mortgage with monthly payments. If you plan to be in the house for
at least five years, should you do it? (Note: Be careful not to
round any intermediate steps less than six decimal places.)
A couple must decide between a blue house and a red house. To purchase the red...
A couple must decide between a blue house and a red house. To
purchase the red house they must tae a $155000 mortgage to be
repaid over 20 years, interest rate is given as j2 = 7.8%. To
purchase the blue house, they must take a mortgage to be repaid
over 25 years at interest rate given as j12 - 8%. Both of those two
mortgages have semi-annual payments and the semi annual mortgage
payments are equal.
(a) Determine the...
42) Putin from Georgia purchases premium cigars from Castro's Smoke House in Miami. The sales contract...
42)
Putin from Georgia purchases premium cigars from Castro's Smoke
House in Miami. The sales contract says delivery is Miami. Under
Article 2 of the UCC, this is a
Select one:
a. a carrier contract.
b. a destination contract.
c. a letter of credit.
d. a shipment contract.
-----------------------------------------
43)
Godzilla offers to purchase all of the bananas that Farmer Budd
grows. This is
Select one:
a. An output contract.
b. An option contract.
c. Not allowed because there is...
A couple took out a 30-year mortgage 10 years ago. At that time, the mortgage was...
A couple took out a 30-year mortgage 10 years ago. At that time,
the mortgage was $306,800.00, with 7.44% APR and monthly
compounding of interest. Today, the couple has been offered
$327,700.00 for their house. If the couple accepts the offer, how
much cash will they take from the deal? The cash will be the
difference between the sell price and what is owed on the loan.
A couple is planning to purchase a house in Nepean for a price of $350,000. They...
A couple is planning to purchase a house in Nepean for a price
of $350,000. They are planning to pay a down payment of $75,000 and
would finance the remainder by a mortgage of $275,000 (i.e.
$350,000 - $75,000 = $275,000). They are considering a 20-year
mortgage, with bi-weekly payments. The quoted rate would 3.5
percent, semi-annual compounded. Calculate the following:
Question 31 (1 point)
What would be the Effective Annual Rate? (1 mark)
Question 31 options:
3.557%
3.561%
3.531%...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1. What is the historical role of investment bankers ? Has this role changed ? Why...
- How were the original Internet requirements met through its design? What are the two main requirements...
- discuss crowdfunding on platforms: What features of the services incorporate virality? What are some of the...
- A textbook of mass 2.08 kg rests on a frictionless, horizontal surface. A cord attached to...
- Describe a time when someone did not really listen to or understand a point you were...
- Enumerations Create an advanced enumeration to represent months (JANUARY – DECEMBER) called enuMonths Add internal properties...
- What is the minimum size of the automorphism group of a simple directed graph having more...
ADVERTISEMENT