1. A fully amortizing CPM loan is originated for $600,000 at 3.6% for 25 years. Please...

1. A fully amortizing CPM loan is originated for $600,000 at 3.6% for 25 years.

Please show the following, what is the remaining mortgage balance at the end of 12 years and how much interest did the lender collect over the 12 years.

Moreover, assume that the borrower decides to reduce the loan balance by $60,000 at the end of year 12. Please show what is the new loan maturity if the loan payments are not reduced and after that assume the loan maturity will not be reduced. What will the new payments be?

Expert Solution

jeff jeffy answered 1 year ago

4. A $600,000 CPM fully amortizing loan is made, at a 4% interest rate compounded monthly,...

4. A $600,000 CPM fully amortizing loan is made, at a 4% interest rate compounded monthly, for a 30 year term. Loan comes with a charge of 5 points. What is the effective annual rate on the loan? *do work in EXCEL please*

A borrower has the following two financing options: 80% LTV fully amortizing CPM for 25 years...

A borrower has the following two financing options: 80% LTV fully amortizing CPM for 25 years at 8% or 90% LTV CPM loan at 9% with similar terms. The borrower is not planning to prepay the loan. a. Compute the incremental cost of borrowing the additional 10% (any property value should works). b. What is the incremental cost of borrowing the additional 10% if the lender charges 2 discount points additional on the 90% loan? c. Redo (b) assuming the...

What are the major differences between the four CPM loans: Fully Amortizing: Partially Amortizing: Interest Only:...

What are the major differences between the four CPM loans: Fully Amortizing: Partially Amortizing: Interest Only: Negative Amortizing:

A fully amortizing mortgage loan is made for $100,000 at 4.5% for 30 years. Payments will...

A fully amortizing mortgage loan is made for $100,000 at 4.5% for 30 years. Payments will be made monthly. Calculate the following: a. Monthly payments b. Interest and principal payments during month 1. c. Total interest and principal payments made over the life of the loan (30 years). d. If the property were sold at the end of year 15, how much is still owed on the mortgage? e. At the end of year 15, how much has been paid...

A fully amortizing mortgage loan is made for $90,000 for 15 years. The interest rate is...

A fully amortizing mortgage loan is made for $90,000 for 15 years. The interest rate is 6 percent per year compounding monthly. Payments are to be made monthly. What is the principal payment in the first monthly payment?

The following loan is fully amortizing. The loan is for $13,000 at 9% interest to be...

The following loan is fully amortizing. The loan is for $13,000 at 9% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.

The following loan is fully amortizing. The loan is for $13,000 at 10% interest to be...

The following loan is fully amortizing. The loan is for $13,000 at 10% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.

4. Make an amortization table for a plain vanilla CPM fully amortizing with the following terms....

4. Make an amortization table for a plain vanilla CPM fully amortizing with the following terms. 30 year monthly payments 4.5% Interest rate $1,000,000 initial loan amount. a. How much interest is paid on the loan over the first 2 years? b. How much interest is paid on the loan over the last 2 years? c. If 25 years from now interest rates drop to 2%, would the borrower be likely to refinance? Why or why not? ****NEED THIS IN...

A fully amortizing mortgage loan is made for $200,000 at 6 percent interest for 30 years....

A fully amortizing mortgage loan is made for $200,000 at 6 percent interest for 30 years. Payments are to be made monthly. (Ignore origination fee and other fees). a. Using Excel, construct fully amortizing mortgage loan table including beginning balance, payment, interest, principal, and ending balance. (Please check your ending balance by using PV function in Excel) b. Interest and principal payments during month 1. c. Total Principal and total interest paid over 30 years. d. The outstanding loan balance...

16 years ago, a homeowner obtained a fully amortizing loan $120,000 at eight percent interest for...

16 years ago, a homeowner obtained a fully amortizing loan $120,000 at eight percent interest for 30 years. Mortgage rates have dropped, so that a fully amortizing 14-year loan can be obtained today at six percent interest. There is a two-percent prepayment penalty on the mortgage balance of the original loan. In addition, the new loan will charge 3 points, and other closing costs on the new loan will add an additional $125.00. All payments and compounding are monthly. What...

Question