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

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

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?
Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of...
Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of 6 percent and monthly payments of $2,398.20. What is the outstanding balance on your current loan if you just make the 96th payment?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT