Question

In: Finance

A house was bought for $300,000 with a mortgage of $240,000. The interest rate is 2.8%...

A house was bought for $300,000 with a mortgage of $240,000. The interest rate is 2.8% and the term is 20 years (paid monthly). If the house appreciates at 2% per year and the selling fees are about 8%, what is the reversion to the homeowner who has occupied the property at the end of year 12?

Solutions

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

A house was bought for $300,000 with a mortgage of $240,000. The interest rate is 2.8%...
A house was bought for $300,000 with a mortgage of $240,000. The interest rate is 2.8% and the term is 20 years (paid monthly). If the house appreciates at 2% per year and the selling fees are about 8%, what is the reversion to the homeowner who has occupied the property at the end of year 12?
Jackie bought a $200,000 house and has a 30 year mortgage at anominal interest rate...
Jackie bought a $200,000 house and has a 30 year mortgage at a nominal interest rate of 4.8% convertible monthly. Jackie must pay level payments at the end of each month. Find the amount of her monthly mortgage payment. After 200 payments have been made, what is the ratio of total interest paid to total principal repaid?
An Adjustable Rate Mortgage (ARM) is made for $300,000 at an initial interest rate of 2...
An Adjustable Rate Mortgage (ARM) is made for $300,000 at an initial interest rate of 2 percent for 30 years. The ARM will be adjusted annually. The borrower believes that the interest rate at the beginning of the year (BOY) 2 will increase to three percent (3%). a. Assuming that the ARM is fully amortizing, what will monthly payments be during year 1? b. Based on (a) what will the loan balance be at the end of year (EOY) 1?...
When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage...
When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage with a 30 year ARM at 5%. Today is the five year anniversary and the rate adjusts to 10%. What is your new mortgage payment?
For a 30-year house mortgage of $300,000 at 5.3% interest, find the following. (Round your final...
For a 30-year house mortgage of $300,000 at 5.3% interest, find the following. (Round your final answers to two decimal places.) (a) the amount of the first monthly payment that goes to repay principal $ (b) the amount of the 181st month's payment (after 15 years) that goes toward payment of principal $
A few years ago, you got married and bought a house with an adjustable rate mortgage...
A few years ago, you got married and bought a house with an adjustable rate mortgage with the following terms: Loan: $240,000 Term: 20 years Initial Rate: 4% Margin: 2% over the Index Rate Lifetime Max: 4.5% The index rate was 2% in year 1, 1.5% in year 2, 4% in year 3, 1% in year 4, and 1% in year 5. a) What is your loan balance at year 5? (5pts) b) What is the effective interest rate is...
A few years ago, you got married and bought a house with an adjustable rate mortgage...
A few years ago, you got married and bought a house with an adjustable rate mortgage with the following terms: Loan: $240,000 Term: 20 years Initial Rate: 4% Margin: 2% over the Index Rate Lifetime Max: 4.5% The index rate was 2% in year 1, 1.5% in year 2, 4% in year 3, 1% in year 4, and 1% in year 5. a) What is your loan balance at year 5? (5pts) b) What is the effective interest rate is...
A few years ago, you got married and bought a house with an adjustable rate mortgage...
A few years ago, you got married and bought a house with an adjustable rate mortgage with the following terms:            Loan:               $240,000             Term:              20 years            Initial Rate:      4%            Margin:          2% over the Index Rate            Lifetime Max: 4.5% The index rate was 2% in year 1, 1.5% in year 2, 4% in year 3, 1% in year 4, and 1% in year 5. What is your loan balance at year 5? What is the effective interest rate is paid off after year 5?
You have just bought a house and have a $125,000, 25-year mortgage with a fixed interest...
You have just bought a house and have a $125,000, 25-year mortgage with a fixed interest rate of 8.5 percent with monthly payments. Over the next five years, what percentage of your mortgage payments will go toward the repayment of principal?.
Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years...
Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years term 1. Calculate annual payment amount 2. Calculate monthly payment amount 3. Do you pay more annually or monthly? Why? 4. Prepare a 60 month loan amortization schedule. How much is your total interest payment?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT