What will be your monthly payment on a $500.000 15 and a 30 yr mortgage if...

What will be your monthly payment on a $500.000 15 and a 30 yr mortgage if the rate is 2.85 % for people with good credit and 8.95% for people with bad credit 4 calculations? (The mortgage is $500,000 (not the price of the house) you will have to adjust bank rate.com default of 20% down to 0% down, 500k mortgage) Also, how much interest will you pay over the life of the 4 loans you just calculated? Why would someone finance a house with a 10-year interest only loan (site 3 reasons)?

Expert Solution

Reasons to finance a house with a 10-year interest only loan

i) Monthly payments are lower during the term.
ii) The borrower can purchase a larger home later by qualifying for a larger home loan.
iii) Interest expense is tax deductible hence the whole amount of the monthly payment qualifies as tax-deduction.

jeff jeffy answered 2 years ago

What is the monthly mortgage payment on a $300,000 30 year fixed rate mortgage with an...

What is the monthly mortgage payment on a $300,000 30 year fixed rate mortgage with an interest rate of 5.125 percent. A friend who knows you have studied amortization asks your help to find the interest portion of their house payments for tax purposes (assuming they itemize). The monthly payments are $2,107.02 on a 30 year loan with a 5 percent interest rate. a) What was the total amount of interest paid during year 2? b) At what point in...

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per...

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per month. How much of that 900,000 on day 1 is deemed to be "current portion of mortgage payable"? 2: Explain the difference between straight-line method of amortization a bond discount as opposed to using the effective interest method of amortizing a bond discount. 3: Why does a Bond sell at a discount? Why would a Bond sell at a premium?

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per...

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per month. How much of that 900,000 on day 1 is deemed to be "current portion of mortgage payable"? 2: Explain the difference between straight-line method of amortization a bond discount as opposed to using the effective interest method of amortizing a bond discount. 3: Why does a Bond sell at a discount? Why would a Bond sell at a premium?

What is the monthly payment for a 30-year mortgage with a 3.00% APY? How much of...

What is the monthly payment for a 30-year mortgage with a 3.00% APY? How much of the first payment goes toward reducing the principal amount owed?

If you make a monthly payment of $425.84 on a 30-year mortgage for $75,000, what is...

If you make a monthly payment of $425.84 on a 30-year mortgage for $75,000, what is the interest rate on your mortgage? You plan to open a savings account and deposit the same amount of money at the beginning of each month. In 10 years, you want to have $25,000 in the account. How much should you deposit if the annual interest rate is 0.5% with quarterly compounding? The Furros Company purchased equipment providing an annual savings of $20,000 over...

1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage...

1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage rate of 5% and an initial mortgage principal of $400,000. (2147.29) 2.(Mortgage Pass-Throughs) Consider a $400 million pass-through MBS that has just been created (so the 'seasoning' of the pass-through is equal to 0). The underlying pool of mortgages each has a maturity of 20 years and an annual mortgage coupon rate of 6%. The pass-through rate of the mortgage pool is 5%. Assuming...

Question

What will be your monthly payment on a $500.000 15 and a 30 yr mortgage if...

Solutions

Expert Solution

Related Solutions

What is the monthly mortgage payment on a $300,000 30 year fixed rate mortgage with an...

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per...

1: The monthly payment on a 900,000 , 20 yr. mortgage at 5.75% is $6,318.75 per...

What is the monthly payment for a 30-year mortgage with a 3.00% APY? How much of...

If you make a monthly payment of $425.84 on a 30-year mortgage for $75,000, what is...

1.(Level-Payment Mortgages) Compute the monthly payment on a 30-year level payment mortgage assuming an annual mortgage...

What is the monthly payment required to fulling amortize a $300,000 mortgage loan over a 30...

What will be the monthly payment on a $75,000 30-year home mortgage at 1% interest per...

5)What is the monthly payment on a 15 year, $350,000 mortgage loan, where interest rate is...

Assuming a 5/1 ARM, calculate the monthly mortgage payment on a 30 year $200,000 mortgage with...