A mortgage is set up for $115000 and is amortized over 25 years at 7.95% interest....

A mortgage is set up for $115000 and is amortized over 25 years at 7.95% interest. Approximate the following payments:) a) monthly b) semi-monthly c) weekly d) biweekly e) accelerated weekly

Solutions

Expert Solution

Formula Used:

Notes:

Weekly payment accelerated:
You still make 52 mortgage payments a year if you have an accelerated weekly mortgage payment, but the size of the payment is significantly lower than the payment of weekly mortgage payment. 8Your monthly loan is divided by four and charged every week with this payment option. So total payments are 12*44 = 48

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

An $600,000 Mortgage is amortized by monthly payments over 25 years. The interest rate charged is...

An $600,000 Mortgage is amortized by monthly payments over 25 years. The interest rate charged is 4% compounded semi-annually. 1.What is the size of the monthly payment to the nearest dollars? 2.How much interest paid in the first payment? 3.What is the outstanding balance after the first payment?

A $425,000 mortgage with a 3-year term is amortized over 25 years at an interest rate...

A $425,000 mortgage with a 3-year term is amortized over 25 years at an interest rate of 8.2% compounded semi-annually. If payments are made at the end of each month, determine the mortgage balance at the end of the 3-year term.

The Grewals agreed to monthly payments on a mortgage of $363,000.00 amortized over 25 years. Interest...

The Grewals agreed to monthly payments on a mortgage of $363,000.00 amortized over 25 years. Interest for the first five years was 4.3% compounded semi-annually. a. Determine the Grewals’ monthly payments. b. Determine the balance owing after the 5-year term. c. Before renewing for another term of 5 years at 4.5% compounded semiannually, the Grewals make an additional payment of $21,000. If they keep the same monthly payments, by how much will the amortization period be shortened? note; sir i...

A $ 120 000.00 mortgage is amortized over 20 years. If interest on the mortgage is...

A $ 120 000.00 mortgage is amortized over 20 years. If interest on the mortgage is 6.5% compounded semi-annually, calculate the size of monthly payments made at the end of each month.

A $86,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is...

A $86,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 5.1% compounded semi-annually for a six-year term. (a) Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c) If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is $__. (Round the final...

A $95,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is...

A $95,000 mortgage is to be amortized by making monthly payments for 25 years. Interest is 8.6% compounded semi-annually for a six-year term. (a)Compute the size of the monthly payment. (b) Determine the balance at the end of the six-year term. (c)If the mortgage is renewed for a six-year term at 6% compounded semi-annually, what is the size of the monthly payment for the renewal term? (a) The size of the monthly payment is $__.(Round the final answer to the...

A mortgage of $100,000 is amortized over 25 years using level payments at the end of...

A mortgage of $100,000 is amortized over 25 years using level payments at the end of each quarter and the first interest payment at the end of the first quarter is $2411.37. Calculate the 62nd principal payment amount. a. 1074.21 b. 1048.92 c. 1100.11 d. 1024.22 e. None of these answers

A $150,000 mortgage at an APR of 5.5% amortized over 25 years can be paid off...

A $150,000 mortgage at an APR of 5.5% amortized over 25 years can be paid off by making monthly payments of $915.59. If instead you make payments of $457.80 every 2 weeks, how much sooner would you be able to repay your mortgage?

The Grewals agreed to monthly payments on a mortgage of $336,000.00 amortized over 20 years. Interest...

The Grewals agreed to monthly payments on a mortgage of $336,000.00 amortized over 20 years. Interest for the first five years was 4.5% compounded semi-annually. a. Determine the Grewals’ monthly payments. b. Determine the balance owing after the 5-year term. c. Before renewing for another term of 5 years at 4.3% compounded semiannually, the Grewals make an additional payment of $12,000. If they keep the same monthly payments, by how much will the amortization period be shortened?

You have just negotiated a 5 year mortgage on $100,000 amortized over 25 years at a...

You have just negotiated a 5 year mortgage on $100,000 amortized over 25 years at a rate of 5%. After 5 years of payments, assume that the mortgage rate remains the same, but you change your monthly payment to $1500. If you change your payment, how many more periods will it take you to pay off the remaining loan balance?

Subjects