Question
In: Finance
A 30-year, $200,000 adjustable-rate mortgage starts out with the rate of 4%. The borrower makes only...
A 30-year, $200,000 adjustable-rate mortgage starts out with the rate of 4%. The borrower makes only the required payments in the first year. If after one year the rate resets to 4.4%, what is the new required payment?
Solutions
Expert Solution
New required monthly payment = $1000.31
| Loan amount | 200000 |
| Tenure | 30 years |
| Original rate | 4% |
| Payment per month | $954.83 |
| Total Principal repayment in year 1 | -3522.073 |
| Balance | 196477.9 |
| New payments | $1,000.31 |
jeff jeffy answered 10 months agoRelated Solutions
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$200,000 with monthly payments. The first two years of the loan
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please.
A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The...
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?
$955
$1,003
$1,067
$1,186
Because of the payment cap, the payment would not change.
A borrower takes out a 30-year adjustable rate mortgage loan for $325,000 with monthly payments.
A borrower takes out a 30-year adjustable rate mortgage loan for
$325,000 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%.
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 $400,000 with monthly payments. The...
A borrower takes out a 30-year adjustable rate mortgage loan for
$400,000 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?
4. A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of...
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 30-year mortgage loan for $200,000 with an interest rate of 6% and...
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
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