In: Finance
25-5
Consider a GNMA mortgage pool with principal of $11 million. The maturity is 15 years with a monthly mortgage payment of 10 percent per year. Assume no prepayments. |
a. |
What is the monthly mortgage payment (100 percent amortizing) on the pool of mortgages? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Monthly mortgage payment | $ |
b. |
If the GNMA insurance fee is 4 basis points and the servicing fee is 46 basis points, what is the yield on the GNMA pass-through? (Do not round intermediate calculations. Round your answer to 5 decimal places. (e.g., 32.16161)) |
Monthly interest rate | % |
c. |
What is the monthly payment on the GNMA in part (b)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) |
Monthly payment | $ |
d. |
Calculate the first monthly servicing fee paid to the originating FIs. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
Monthly servicing fee | $ |
e. |
Calculate the first monthly insurance fee paid to GNMA. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) |
Monthly insurance payment |
$ |
a. | |
What is the monthly mortgage payment (100 percent amortizing) on the pool of mortgages? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) | |
Principal | $11,000,000.00 |
Rate =10%/12 | 0.83% |
Period = 15 x 12 | 180 |
Monthly mortgage payment = PMT(.83%,180,-11000000) | $118,206.56 |
b. | |
If the GNMA insurance fee is 4 basis points and the servicing fee is 46 basis points, what is the yield on the GNMA pass-through? (Do not round intermediate calculations. Round your answer to 5 decimal places. (e.g., 32.16161)) | |
GNMA's annual interest rate = .10 - 0.0046 - 0.0004 | 9.50% |
Monthly interest rate = 9.50%/12 | 0.79% |
c. | |
What is the monthly payment on the GNMA in part (b)? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) | |
Principal | $11,000,000.00 |
Rate =9.50%/12 | 0.79% |
Period = 15 x 12 | 180 |
Monthly mortgage payment = PMT(.79%,180,-11000000) | $114,864.72 |
d. | |
Calculate the first monthly servicing fee paid to the originating FIs. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) | |
Monthly servicing fee = .46%/12 x $11,000,000 | $4,216.67 |
e. | |
Calculate the first monthly insurance fee paid to GNMA. (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) | |
Monthly insurance payment = .04%/12 x $11,000,000 | $366.67 |