Question
In: Accounting
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let you pay a "point" (1.0 % of the total amount of the loan) to reduce your APR from 5.96 % to 5.71 %
on your $429,000, 3030-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it?
The PV of the monthly savings is $
The balance of the mortgage at the end of five years at 5.96 % APR is $
The balance of the mortgage at the end of five years at 5.71 % APR is $
The principal reduction due to the lower interest rate is $
Solutions
ekkarill92 answered 1 year agoRelated Solutions
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point" (1.0 % of the total amount of the loan) to
reduce your APR from 6.24% to 5.99% on your $409,000, 30-year
mortgage with monthly payments. If you plan to be in the house for
at least five years, should you do it? (Note: Be careful not to
round any intermediate steps less than six decimal places.)
The monthly mortgage payment at 6.24% APR is...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point"
(1.0 %
of the total amount of the loan) to reduce your APR from
6.46 %
to
6.21 %
on your
$ 403 comma 000
,
30
-year
mortgage with monthly payments. If you plan to be in the house
for at least five years, should you do it? (Note: Be careful not
to round any intermediate steps less than six decimal places.)
The...
You are buying a house and the mortgage company offers to let you pay a "point"...
You are buying a house and the mortgage company offers to let
you pay a "point" 1.0% of the total amount of the loan) to reduce
your APR from 5.88% to 5.63% on your $419,000, 30-year mortgage
with monthly payments. If you plan to be in the house for at least
five years, should you do it? (Note: Be careful not to round any
intermediate steps less than six decimal places.)
The monthly mortgage payment at 5.88% APR is $_...
Suppose you are buying a house and have taken out a mortgage for $250,000. The mortgage...
Suppose you are buying a house and have taken out a mortgage for
$250,000. The mortgage is a 30 year fixed rate mortgage with an APR
of 5.25%. What is your monthly mortgage payment?
Construct a loan amortization table in Excel for mortgage loan
in the previous problem. You should do the problem in Excel using
monthly payments and you must submit the spreadsheet with
formulas.
MORTGAGE AMORTIZATION: Suppose you are considering buying a house with a market price of $350,000. You...
MORTGAGE AMORTIZATION:
Suppose you are considering buying a house with a market price
of $350,000. You plan on making a down payment of 20% and financing
the remainder using a fully amortizing, 30-year, monthly payment
mortgage with a fixed interest rate of 4.50%. Assuming your first
payment is due exactly one month from today...
• What is your required monthly payment?
• During the first five years (i.e., 60 months), what is the
percentage of your total payments which go...
You are buying a new house on a 30-year, 5.2% mortgage loan of $230,000. A) How...
You are buying a new house on a 30-year, 5.2% mortgage loan of
$230,000.
A) How much will your monthly payments be?
B) How much will go toward principal in the 75th month? How much
will go toward interest in the 75th month? What will be the balance
after 75 months?
C) How much interest will you pay in total over the 30
years?
D) If you do a 15-year loan instead of a 30-year one, how much
will you...
You are buying a new house on a 30-year, 6.2% mortgage loan of $230,000. A. How...
You are buying a new house on a 30-year, 6.2% mortgage loan of
$230,000.
A. How much will your monthly payments be?
B. How much will go toward principal in the 55th
month? How much will go toward interest in the 55th
month? What will be the balance after 55 months?
C. How much interest will you pay in total over the 30
years?
D. If you do a 15-year loan instead of a 30-year one, how much
will you...
You buy a house at $255000. You pay $25000 down and you take out a mortgage...
You buy a house at $255000. You pay $25000 down and you take out
a mortgage at 4.45% compounded monthly on the balance for 30 years.
1. find monthly payment. 2.find total amount of interest you will
pay for 30 years 3. created authorization table with payment
number, monthly payment, interest per month, portion to principal,
principal at the end of the year.
3. Bobby and Sylvia are buying a house. They have applied for a $215,000 mortgage at...
3. Bobby and Sylvia are buying a house. They have applied for a
$215,000 mortgage at two companies:
a. Company 1: (Canwee, Cheatum and Howe) lasting 30 years at
3.99% interest.
b. Company 2: (How, Wei, Ripum and Off) lasting 25 years at
3.67% interest.
c. Determine their monthly payment from each company
d. How much principal and interest will be paid for the first
payment from each company?
e. Which is the better deal?
(1 point) A couple purchases a house and signs a mortgage contract for $480000 to be...
(1 point) A couple purchases a house and signs a mortgage
contract for $480000 to be paid with monthly payments over 30
years. The interest rate of the mortgage is j1 = 15% and can be
renegotiated every 5 years without penalty. At the end of the 5th
year they refinance the loan at j1 = 12%. Calculate the initial
monthly payment and the payment after the mortgage is refinanced.
Also determine the value of the savings for the 2nd...
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