Suppose you bought a house on January 1 and took out a mortgage for $400,000. The...

Suppose you bought a house on January 1 and took out a mortgage for $400,000. The amortized loan requires annual payments for 15 years. For tax purposes you want to figure out how much you will pay in interest in each year of the loan. Assuming the loan's interest rate is 9%, how much will you pay in interest in the 2nd year of the loan.

Expert Solution

jeff jeffy answered 1 year ago

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for...

Three years ago, you bought a house. You took out a $350,000.00 mortgage at 4.75% for 30 years. Now that interest rates have fallen (beginning of year 4 of your current mortgage), you are considering refinancing your existing loan with a new 30 year loan. Your new loan must pay off the remaining balance of your old loan plus pay for all of the fees, associated with the new loan. In addition to all of the standard fees, you choose...

When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage...

When you bought your house for $300,000 5 years ago you took out a $250,000 mortgage with a 30 year ARM at 5%. Today is the five year anniversary and the rate adjusts to 10%. What is your new mortgage payment?

Intro You just took out a 15-year traditional fixed-rate mortgage for $400,000 to buy a house....

Intro You just took out a 15-year traditional fixed-rate mortgage for $400,000 to buy a house. The interest rate is 1.2% (APR) and you have to make payments monthly. Part 1 What is your monthly payment? Part 2 How much of your first monthly payment goes towards paying down the outstanding balance (in $)? Part 3 How much of your 13th monthly payment goes towards paying down the outstanding balance (in $)?

Professor bought an investment property for $400,000. He took out a standard 30 year fixed mortgage...

Professor bought an investment property for $400,000. He took out a standard 30 year fixed mortgage for $244000 at a nominal rate of 4.875% per year, with uniform monthly payments starting one month from the date of closing. He paid all of the loans closing costs. What were his monthly mortgage payments? $ Exactly 5 years to the day he sold the property for $475,000. Assuming that he had already made his mortgage payment that day what was the remaining...

Amy bought her house on Dec. 1 and took a $200,000 mortgage as part of the...

Amy bought her house on Dec. 1 and took a $200,000 mortgage as part of the payment. The 15-year mortgage has a 7.2 percent nominal annual rate, but it calls for monthly payments beginning Jan. 1 next year. How much is the total interest paid after the 6th payment?

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.

Suppose you borrowed $400,000 for a home mortgage on January 1, 2010 with an annual interest...

Suppose you borrowed $400,000 for a home mortgage on January 1, 2010 with an annual interest rate of 3.5% per year compounded monthly. (a) If you didn't make any payments and were only charged the interest (and no late fees), how much would you owe on the mortgage on January 1, 2030? (b) Suppose the balance on the mortgage is amortized over 20 years with equal monthly payments at the end of each month. (This means the unpaid balance on...

You have just bought a house and have taken out a mortgage (an installment) loan for...

You have just bought a house and have taken out a mortgage (an installment) loan for $500,000. This is a 30-year loan that requires monthly payments and the first payment is due one month from today. The APR for the loan is 24%. You are interested to know how much of your 210th monthly payment will go toward the repayment of principal? That amount is _______________ Question 10 options: $762.65 $9,586.98 $625.64 $9,494.78 $513.24 $9,382.38 $421.04 $9,245.37

Suppose that you have decided to purchase a house for $400,000 using an adjustable-rate mortgage with...

Suppose that you have decided to purchase a house for $400,000 using an adjustable-rate mortgage with the terms provided below. Loan-to-value ratio: 90% Index rate: one-year Treasury yield (currently 3.00%) Margin: 250 basis points Amortization: 15 years with monthly payments and compounding Annual cap: 1.5 percentage points Lifetime cap: 5 percentage points Adjustment period: Annually Teaser Rate 2.50% What is the monthly payment during the first year of the loan? a. $2400.44,b. $2133.73,c. $3268.33, d. $2667.16, e. None of the...

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?

Question