Question
In: Finance
1.Suppose you take a 30 year fixed-rate mortgage for $175,000 at 5.50%, monthly payments with a...
1.Suppose you take a 30 year fixed-rate mortgage for $175,000 at 5.50%, monthly payments with a two discount point rebate (negative discount points) to the borrower. Assume that you have no other financing fees.
A.(1 pt) What is the APR of the loan?
B.(1 pt) What is the effective cost with a five-year holding period?
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Suppose you take a fixed-rate mortgage for $200,000 at 5.00% for 30 years, monthly payments. 1)...
Suppose you take a fixed-rate mortgage for $200,000 at 5.00% for
30 years, monthly payments.
1) How much of the payment is interest for month 100? How much
interest do you pay in the first six years?
Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments. A....
Suppose you take a fixed-rate mortgage for $250,000 at 4.50% for
30 years, monthly payments.
A. (1 pt) How much of the payment is interest for month 100?
B. (1 pt) How much total interest do you pay in the first six
years?
You take out a $250,000 30 year mortgage with monthly payments and a rate of 10%,...
You take out a $250,000 30 year mortgage with monthly payments
and a rate of 10%, monthly compounded. What will your mortgage
balance be after your first year of making your monthly payments?
How much total interest you paid on this mortgage?
work out on a financial calculator. explain the steps to take
please.
Suppose you take a $200,000 thirty-year fixed-rate mortgage at 5.25%, two discount points, monthly payments. At...
Suppose you take a $200,000 thirty-year fixed-rate mortgage at
5.25%, two discount points, monthly payments. At the end of the
first year you inherit $20,000 from your now-favorite aunt. You
decide to apply this $20,000 to the principal balance of your
loan.
A. (1 pt) How many monthly payments are remaining after the extra
lump sum payment is made?
B. (1 pt) What is your net interest savings over the life of the
loan, assuming the loan is held to...
You qualify for an $800,000 fully amortizing 30-year fixed rate mortgage with monthly payments. If the...
You qualify for an $800,000 fully amortizing 30-year fixed rate
mortgage with monthly payments. If the annual interest rate is
3.63%, compounded monthly, what will the monthly mortgage payment
be?
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments for $4,500,000.
Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5
points upfront.
Mortgage B has a 6% interest rate and requires Ann to pay zero
fees upfront.
Assuming Ann makes payments for 2 years before she sells the
house and pays the bank the
the
bank the balance, which mortgage has the lowest cost of borrowing
(lowest annualized IRR)
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments for $4,500,000.
Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5
points upfront.
Mortgage B has a 6% interest rate and requires Ann to pay zero
fees upfront.
Assuming Ann makes payments for 2 years before she sells the
house and pays the bank the balance, which mortgage has the lowest
cost of borrowing (ie lowest annualized IRR)? Type 1 for...
Aann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Aann is looking for a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments for $4,500,000.
Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5
points upfront.
Mortgage B has a 6% interest rate and requires Ann to pay zero
fees upfront.
Assuming Ann makes payments for 30 years, which mortgage has the
lowest cost of borrowing
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments for $1,250,000.
Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5
points upfront.
Assuming Ann makes payments for 2 years before she sells the
house and pays the bank the balance, what is Ann’s annualized IRR
from mortgage A?
#2 IRR from mortgage B?
I would like to know how to calculate the IRR of this in a BA
II
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate
Mortgage with monthly payments for $1,250,000. Mortgage A has a
4.38% interest rate and requires Ann to pay 1.5 points upfront.
Assuming Ann makes payments for 30 years, what is Ann’s IRR from
mortgage A? Note: IRR is always annualized. If you’ve found a
monthly rate, multiply by 12. In this case, two digits for a
monthly rate is not enough to avoid rounding errors in the annual
rate...
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