Question
In: Economics
6. Assume the annual interest rate on a $500,000 7-year balloon mortgage is 6 percent. Payments...
6. Assume the annual interest rate on a $500,000 7-year balloon mortgage is 6 percent. Payments will be made monthly based on a 30-year amortization schedule.
f. What will be the remaining mortgage balance on the new 4.5 percent loan at the end of year 7 (four years after refinancing)?
g. What will be the difference in the remaining mortgage balances at the end of year 7 (four years after refinancing)?
h. At the end of year 3 (beginning of year 4), what will be the present value of the difference in monthly payments in years 4–7, discounting at an annual rate of 4.5 percent?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The...
A borrower takes out a 20-year mortgage for $500,000 with an
interest rate of 6%. The loan requires monthly payments and has a
3% fee if the loan is repaid within 10 years. What is the effective
interest rate on the loan if the borrower repays the loan after 72
payments?
A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The...
A borrower takes out a 20-year mortgage for $500,000 with an
interest rate of 6%. The loan requires monthly payments and has a
3% fee if the loan is repaid within 10 years. What is the effective
interest rate on the loan if the borrower repays the loan after 72
payments?
Assume you have an adjustable rate mortgage with interest rates of 6% for year 1, 7%...
Assume you have an adjustable rate mortgage with interest rates
of 6% for year 1, 7% for year 2, 5% for year 3 and 4% for the
remaining years of a 10 year mortgage. What is the rate of return
if the original mortgage at time 0 is $700,000 and payments are
made annually?
The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 6% per year. What will be your annual payment if you sign this mortgage?
You are thinking of purchasing a house. The house costs
$250,000. You have $36,000 in cash that you can use as a down
payment on the house, but you need to borrow the rest of the
purchase price.The bank is offering a 30-year mortgage that requires annual
payments and has an interest rate of 6% per year. What will be your
annual payment if you sign this mortgage?
Assume a 30-year, $600,000, 6% mortgage with annual payments. 16. Assume the first payment beginning in...
Assume a 30-year, $600,000, 6% mortgage with annual
payments.
16. Assume the first payment beginning in exactly one year, what is
the annual payment?
17. What is the outstanding mortgage balance after you have made 10
payments?
18. If the loan calls for monthly payments, what is the monthly
payment?
Assume you have a 6% 30-year mortgage for $100,000 with now 10
years to maturity (annual payments with exactly one year to the
next payment). You are considering a refinance...
A 30-year mortgage for $220,000 has monthly payments at a 6% nominal annual rate. If a...
A 30-year mortgage for $220,000 has monthly payments at a 6%
nominal annual rate. If a borrower’s loan origination fee is 3% and
is added to the initial balance, what is the true effective cost of
the loan? (8 pts)
If the house is sold after six years and the loan is paid off,
what is the effective interest rate? (4 pts)
Graph the effective interest rate as the time to sell the house
and pay off the loan varies...
You currently have a 30-year mortgage with annual payments of $6000. Annual interest rate is 8%....
You
currently have a 30-year mortgage with annual payments of $6000.
Annual interest rate is 8%. In how many years, the balance on your
mortgage will drop to half of its current value? Round your result
to two decimal places (i.e., if the result is 7.6542, enter it as
7.65).
You take out a 30-year $500,000 mortgage at an effective annual interest rate of 8%. Immediately...
You take out a 30-year $500,000 mortgage at an effective annual
interest rate of 8%. Immediately after your 12th payment, you make
an additional principal repayment of $50,000, and then refinance
the outstanding balance with a new 15-yeatr mortgage at a 4%
effective annual interest rate. Both mortgages require annual
year-end level amortization payments. Find the amount of interest
in the 5th payment of the new mortgage.
PLEASE NO EXCEL!!!! :)
You have borrowed $100,000 on a 40-year mortgage with monthly payments. The annual interest rate is...
You
have borrowed $100,000 on a 40-year mortgage with monthly payments.
The annual interest rate is 16 percent. How much will you pay over
the course of the loan? With four years left on the loan, how much
will you still owe?
Excel
You have borrowed $100,000 on a 40-year mortgage with monthly payments. The annual interest rate is...
You
have borrowed $100,000 on a 40-year mortgage with monthly payments.
The annual interest rate is 16 percent. How much will you pay over
the course of the loan? With four years left on the loan, how much
will you still owe?
excel
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Young and Company claims that its pressurized diving bell will, on average, maintain its integrity to...
- 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average...
- An asset is purchased on January 1 for $48,700. It is expected to have a useful...
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
- -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the...
- function X=extractDWT(x_train,startS,endS,wStep,wRange) % x_train = input signal % startS = from second % endS = end...
- Do you agree that Social Loafing is similar to Theory X. Give an example to support...
ADVERTISEMENT