A fifteen-year adjustable-rate mortgage of $117,312.50 is being repaid with monthly payments of $988.45 based upon...

A fifteen-year adjustable-rate mortgage of $117,312.50 is being repaid with monthly payments of $988.45 based upon a nominal interest rate of 6% convertible monthly. Immediately after the 60th payment, the interest rate is increased to a nominal interest rate of 7.5% convertible monthly. The monthly payments remain at $988.45, and there will be an additional balloon payment at the end of the fifteen years to pay the outstanding loaning balance. Calculate the loan balance immediately after the 84th payment. Calculate the amount of interest in the 84th payment. Calculate the amount of the balloon payment at the end. Please do not use tables and show mathematical work.

Solutions

Expert Solution

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

a fifteen year adjustable-rate mortgage of 117,134.80 is being repaid with monthly payments of 988.45 based...

a fifteen year adjustable-rate mortgage of 117,134.80 is being repaid with monthly payments of 988.45 based upon a nominal rate of interest of 6% convertible monthly. immediately after the 60th payment, the interest rate is increased to a nominal interest rate of 7.5% convertible monthly. the monthly payments remain at 988.45, and there will be an additional balloon payment at the end of the fifteen years to pay the outstanding loan balance. a) calculate the loan balance immediately after the...

A borrower takes out a 15-year adjustable rate mortgage loan for $560,000 with monthly payments. The...

A borrower takes out a 15-year adjustable rate mortgage loan for $560,000 with monthly payments. The first 4 years of the loan have a “teaser” rate of 5%, after that, the rate can reset with a 5% annual payment cap. On the reset date, the composite rate is 9%. What would the Year 5 (after 4 years; 11 years left) monthly payment be?

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 15-year adjustable rate mortgage loan for $550,000 with monthly payments. The...

A borrower takes out a 15-year adjustable rate mortgage loan for $550,000 with monthly payments. The first 5 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 7%. What would the Year 6 (after 5 years; 10 years left) monthly payment be?

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 2%, after that, the rate can reset with a 7% 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?

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? with the way please.

A borrower takes out a 25-year adjustable rate mortgage loan for $446,242 with monthly payments. The...

A borrower takes out a 25-year adjustable rate mortgage loan for $446,242 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?

A borrower takes out a 28-year adjustable rate mortgage loan for $451,185 with monthly payments. The...

A borrower takes out a 28-year adjustable rate mortgage loan for $451,185 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?

A 50000$ mortgage is to be repaid by means of monthly payments, at the beginning of...

A 50000$ mortgage is to be repaid by means of monthly payments, at the beginning of each month, for 20 years. If the nominal interest rate is 12% convertible monthly, (a) Find the monthly payment (b) Suppose now an extra payment of 1000$ is made at the end of each year. Determine the monthly payment (This problem needs to be solved using the concept of annuities)..

Subjects