Question

In: Finance

How to solve by steps: Mary Smith wants to buy a property for $275,000 and obtains...

How to solve by steps: Mary Smith wants to buy a property for $275,000 and obtains an 80 percent loan. This loan can be obtained for 30 years at 5.75 percent interest (monthly payments) with two points charged on the loan. a. What dollar amount will the lender actually disburse? b. What is the monthly payment? c. How much interest is paid in year 4?

Solutions

Expert Solution

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Mary wants to buy a car but is unsure how much of she can afford. The...
Mary wants to buy a car but is unsure how much of she can afford. The maximum monthly payment she can afford is $780. Her bank's interest rate is 14% annualy if she pays off loan over 5 years. what is the maximum amount she can afford to borrow? - impossible to calculate with given data - she can afford $53,325.05 -she can afford $46,800.03 -she can afford $33,522.07 (show all excel work)
Ed wants to buy a property for $320,000 and wants a CPM loan for 80%. A...
Ed wants to buy a property for $320,000 and wants a CPM loan for 80%. A lender indicates the loan can be obtained for 30 years at 5.5% with an origination loan fee of $1,200 and 2 points. If Ed repays the loan after five years, is the effective interest cost different from the APR? If so, why? The effective interest cost is the same as the APR. Although there was less time over which to spread the origination loan...
Ed wants to buy a property for $320,000 and wants a CPM loan for 80%.
Please answer #2 only Ed wants to buy a property for $320,000 and wants a CPM loan for 80%. A lender indicates the loan can be obtained for 30 years at 5.5% with an origination loan fee of $1,200 and 2 points. 1. How much will the lender actually disburse? $249,680 2. What is the effective interest cost to the borrower, assuming that the mortgage is paid after 30 years? a. 3.79% b. 6% c. 5.54% d. 5.73% e. 5.77%
Ed wants to buy a property for $320,000 and wants a CPM loan for 80%.
Ed wants to buy a property for $320,000 and wants a CPM loan for 80%. A lender indicates the loan can be obtained for 30 years at 5.5% with an origination loan fee of $1,200 and 2 points.How much will the lender actually disburse?$249,680$254,800$256,000$248,400$312,400
Mary Jo wants to buy a boat that is available at two dealerships. The price of...
Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 2,007.36 dollars for 12 years at a quarterly interest rate of 2.66 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 1,244.67 for 5 years and if her first payment to Fairfax Boats would...
Mary Jo wants to buy a boat that is available at two dealerships. The price of...
Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 2,047.48 dollars for 9 years at a quarterly interest rate of 3.02 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 985.51 for 5 years and if her first payment to Fairfax Boats would...
John wants to buy a property for $105,000 and wants an 80% LTV loan for $84,000....
John wants to buy a property for $105,000 and wants an 80% LTV loan for $84,000. A fully amortizing loan can be obtained for 30 years at 8 percent interest. A loan origination fee of $3,500 will be necessary to obtain the loan. c) If John pays off the loan after five years, what is the effective cost of borrowing? Why is it different from the effective cost in part (b)? d) Assume the lender also imposes a prepayment penalty...
1)Mary Jo wants to buy a boat that is available at two dealerships. The price of...
1)Mary Jo wants to buy a boat that is available at two dealerships. The price of the boat is the same at both dealerships. Middlefield Motors would let her make quarterly payments of 2,324.41 dollars for 7 years at a quarterly interest rate of 2.17 percent. Her first payment to Middlefield Motors would be due immediately. If Fairfax Boats would let her make equal monthly payments of 1,493.46 for 3 years and if her first payment to Fairfax Boats would...
Kathy wants to buy a condominium selling for ​$97,000. The taxes on the property are ​$1500...
Kathy wants to buy a condominium selling for ​$97,000. The taxes on the property are ​$1500 per​ year, and​ homeowners' insurance is ​$336 per year. Kathy's gross monthly income is ​$5000. She has 15 monthly payments of ​$145 remaining on her van. The bank is requiring​ 20% down and is charging a​ 9.5% interest rate with no points. Her bank will approve a loan that has a total monthly mortgage payment of​ principal, interest, property​ taxes, and​ homeowners' insurance that...
Kathy wants to buy a condominium selling for ​$96,000. The taxes on the property are ​$1400...
Kathy wants to buy a condominium selling for ​$96,000. The taxes on the property are ​$1400 per​ year, and​ homeowners' insurance is ​$346 per year.​ Kathy's gross monthly income is ​$5000. She has 15 monthly payments of ​$145 remaining on her van. The bank is requiring​ 20% down and is charging a​ 9.5% interest rate with no points. Her bank will approve a loan that has a total monthly mortgage payment of​ principal, interest, property​ taxes, and​ homeowners' insurance that...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT