Question
In: Finance
You purchase a home for $120,000. You obtain a 30 year loan from Bank Second, paying...
You purchase a home for $120,000. You obtain a 30 year loan
from Bank Second, paying 20% down, with your loan to be paid off in
monthly payments.
a. If the annual interest rate is 8.5% and your first payment
is in February, what is your outstanding principal balance after
your April payment?
b. How much interest would you save by obtaining a 15 year
loan versus a 30 year loan? Show all work.
Solutions
Expert Solution
1.
95824.29
2.
=PMT(8.5%/12,12*30,-120000*(1-20%))*12*30-PMT(8.5%/12,12*15,-120000*(1-20%))*12*15
=95573.5043
jeff jeffy answered 1 year agoRelated Solutions
You purchase a home for $120,000. You obtain a 30 year loan from Bank Second, paying...
You purchase a home for $120,000. You obtain a 30 year loan
from Bank Second, paying 20% down, with your loan to be paid off in
monthly payments.
a. If the annual interest rate is 8.5% and your first payment
is in February, what is your outstanding principal balance after
your April payment?
b. How much interest would you save by obtaining a 15 year
loan versus a 30 year loan? Show all work.
You purchase a $225,000 town home and you pay 20% down. You obtain a 30 year...
You purchase a $225,000 town home and you pay 20% down. You
obtain a 30 year fixed rate mortgage with an annual interest rate
of 3.75%. After 20 years you refinance the mortgage for 10 years at
a 3.25% annual interest rate. After you refinance what is the new
monthly payment to the nearest dollar? 1.) 797 2.)814 3.) 932
4.)1,335 5.) 1,500
You purchase a $325,000 town home and you pay 25 percent down. You obtain a 30-year...
You purchase a $325,000 town home and you pay 25 percent down.
You obtain a 30-year fixed-rate mortgage with an annual interest
rate of 5.75 percent and monthly payments. After five years you
refinance the mortgage for 25 years at a 5.1 percent annual
interest rate. After you refinance, what is the new monthly payment
(to the nearest dollar)?
You purchase a $450,000 town home and you pay 20 percent down. You obtain a 30-year...
You purchase a $450,000 town home and you pay 20 percent down.
You obtain a 30-year fixed-rate mortgage with an annual interest
rate of 6.5 percent. After five years you refinance the mortgage
for 25 years at a 5.75 percent annual interest rate. After you
refinance, what is the new monthly payment (to the nearest
dollar)?
1. You purchase a $350,000 town home and you pay 25% down. You obtain a 30...
1. You purchase a $350,000 town home and you pay 25% down. You
obtain a 30 year fixed rate mortgage with an annual interest rate
of 6.25%. After 5 years you refinance the mortgage for 25 years at
a 5% annual interest rate. After you refinance what is the new
monthly payment?
2. You plan to purchase a $175,000 house using a 15-year
mortgage obtained from your local bank. The mortgage rate offered
to you is 7.75%. You will make...
You plan to purchase an $120,000 house using a 15-year mortgage obtained from your local bank....
You plan to purchase an $120,000 house using a 15-year mortgage
obtained from your local bank. The mortgage rate offered to you is
8.00 percent. You will make a down payment of 20 percent of the
purchase price.
Calculate the amount of interest and, separately, principal paid
in the 120th payment
305.72 and 611.71
3057.20 and 6117.10
318.46 and 637.20
7926.90 and 73.11
Suppose that 10 years ago you bought a home for $120,000, paying 10% as a down...
Suppose that 10 years ago you bought a home for $120,000, paying
10% as a down payment, and financing the rest at 7% interest for 30
years.
This year (10 years after you first took out the loan), you check
your loan balance. Only part of your payments have been going to
pay down the loan; the rest has been going towards interest. You
see that you still have $92,678 left to pay on your loan. Your
house is now...
Suppose that 10 years ago you bought a home for $120,000, paying 10% as a down...
Suppose that 10 years ago you bought a home for $120,000, paying
10% as a down payment, and financing the rest at 7% interest for 30
years.
This year (10 years after you first took out the loan), you check
your loan balance. Only part of your payments have been going to
pay down the loan; the rest has been going towards interest. You
see that you still have $92,678 left to pay on your loan. Your
house is now...
You purchase a cottage for $170,000. You obtain a 20-year, fixed rate mortgage loan at 12.0%...
You purchase a cottage for $170,000. You obtain a 20-year, fixed
rate mortgage loan at 12.0% after paying a down payment of 20%. Of
the second month's mortgage payment, how much is interest and how
much is applied to the principal? (Round your answers to the
nearest cent.)
interest = $
applied to the principal = $
You purchase a cottage for $185,000. You obtain a 25-year, fixed rate mortgage loan at 12.5%...
You purchase a cottage for $185,000. You obtain a 25-year, fixed
rate mortgage loan at 12.5% after paying a down payment of 25%. Of
the second month's mortgage payment, how much is applied to the
principal ? (Round your answers to the nearest cent.)
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