Question
In: Finance
7 years ago, you took an adjustable rate mortgage and the fixed period has just expired. The...
7 years ago, you took an adjustable rate mortgage and the fixed period has just expired. The loan was originally for $550,000 with 360 payments at 3.145% compounded monthly. If interest rates have risen to 4.750%, what will be the new monthly payment?
|
$2,764 |
||
|
$2,362 |
||
|
$2,418 |
||
|
$2,797 |
Solutions
jeff jeffy answered 1 year agoRelated Solutions
Five years ago you took out a 5/1 adjustable rate mortgage and the five-year fixed rate...
Five years ago you took out a 5/1 adjustable rate mortgage and
the five-year fixed rate period has just expired. The loan was
originally for
$300,000 with 360 payments at 4.2% APR, compounded monthly.
a. Now that you have made 60 payments, what is the remaining
balance on the loan?
b. If the interest rate increases by 1%, to 5.2% APR,
compounded monthly, what will be your new payments?
a. Now that you have made
60 payments, what is the...
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 just took a fixed-rate mortgage for $250,000 at 4.50% for 30 years, monthly payments, two...
You just took a fixed-rate mortgage for $250,000 at 4.50% for 30
years, monthly payments, two discount points. Before you make any
payments you receive a nice raise so you plan to pay an extra $160
per month on top of your normal payment.
A. (1 pt) How many monthly payments do have to make at the higher
payment to fully amortize the loan?
B. (1 pt) What is your net interest savings over the life of the
loan, assuming...
Discuss the advantages and disadvantages of an adjustable-rate mortgage versus a fixed-rate mortgage.
Discuss the advantages and disadvantages of an adjustable-rate
mortgage versus a fixed-rate mortgage.
which mortgage is riskier for lender? fixed rate mortgage to adjustable rate mortgage? And why does...
which mortgage is riskier for lender? fixed rate mortgage to
adjustable rate mortgage? And why does the adjustable rate mortgage
have lower expected yield?
Five years ago you took out a 30-year fixed $300,000 mortgage with monthly payments and an...
Five years ago you took out a 30-year fixed $300,000 mortgage
with monthly payments and an APR of 8%, compounded monthly. You
have made the normal payments in full, and, this morning, after
making a normally scheduled payment, you are paying off the
balance by taking out a new 30-year fixed mortgage at a lower
APR of 6% (with monthly compounding). How much will each monthly
payment be?
You just took out a 15-year traditional fixed-rate mortgage for $100,000 to buy a house. The...
You just took out a 15-year traditional fixed-rate mortgage for
$100,000 to buy a house. The interest rate is 6.24% (APR) and you
have to make payments monthly.
1. What is your monthly payment?
2. How much of your first monthly payment goes towards paying
down the outstanding balance (in $)?
3. What is the outstanding balance after 1 year if you have made
all 12 payments on time?
4. How much of your 13th monthly payment goes towards paying...
Six years ago you took out a $220,000, 15-year mortgage with an annual interest rate of...
Six years ago you took out a $220,000, 15-year mortgage with an
annual interest rate of 6% compounded monthly.
i. Estimate your monthly payments on the mortgage.
ii. Compute the outstanding balance on your current loan if you
have just made the 72th payments?
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