Question
In: Finance
A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The...
A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The loan requires monthly payments and has a 3% fee if the loan is repaid within 10 years. What is the effective interest rate on the loan if the borrower repays the loan after 72 payments?
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A borrower takes out a 20-year mortgage for $500,000 with an interest rate of 6%. The...
A borrower takes out a 20-year mortgage for $500,000 with an
interest rate of 6%. The loan requires monthly payments and has a
3% fee if the loan is repaid within 10 years. What is the effective
interest rate on the loan if the borrower repays the loan after 72
payments?
A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6%...
A borrower takes out a 30-year mortgage loan for $100,000 with
an interest rate of 6% plus 4 points. Payments are to be made
monthly.
a. What is the effective cost of borrowing on the loan if the
loan is carried for all 30 years?
b. What is the effective cost of borrowing on the loan if the
loan is repaid after 10 years?
A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 6%...
A borrower takes out a 30-year mortgage loan for $250,000 with
an interest rate of 6% and monthly payments. What portion of the
first month's payment would be applied to interest? ($1250) Assume
the question above was a negative amortization loan, what would be
the balance after 3 years?
a borrower takes out a 15 year mortgage loan for 100,000 with an interest rate of...
a borrower takes out a 15 year mortgage loan for 100,000 with an
interest rate of 5% plus 3 points. what is the effective annual
interest rate on the loan if the loan is carried 15 years.
A borrower takes out a 15-year mortgage loan for $490,000 with an interest rate of 4.5%....
A borrower takes out a 15-year mortgage loan for $490,000 with
an interest rate of 4.5%. If she wants to pay off the loan after 6
years, what would be the outstanding balance on the loan?
A borrower takes out a 30-year mortgage loan for $250,000 with an interest rate of 5%...
A borrower takes out a 30-year mortgage loan for $250,000 with
an interest rate of 5% and monthly payments.
What portion of the first month’s payment would be applied to
Interest?
4. A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of...
4. A borrower takes out a 30-year mortgage loan for $100,000
with an interest rate of 6% plus 2 points. What is the effective
annual interest rate on the loan if the loan is carried for all 30
years?
(A) 6.0%
(B) 6.2%
(C) 6.4%
(D) 6.6%
. A borrower takes out a 30 - year adjustable rate mortgage loan for $200,000 with...
. A borrower takes out a 30 - year adjustable rate mortgage loan
for $200,000 with monthly payments. The first two years of the loan
have a “teaser” rate of 4%, after that, the rate can reset with a
2% annual rate cap. On the reset date, the composite rate is 5%.
What would the Year 3 monthly payment be?
(A) $955
(B) $1,067
(C) $1,071
(D) $1,186
(E) Because of the rate cap, the payment would not change.
A borrower has a 30-year mortgage loan for $200,000 with an interest rate of 6% and...
A borrower has a 30-year mortgage loan for $200,000 with an
interest rate of 6% and monthly payments. If she wants to pay off
the loan after 8 years, what would be the outstanding balance on
the loan? (D)
$84,886
$91,246
$146,667
$175,545
Not enough information
Please explain me the step on financial calculator. The answer
is D
A borrower has a 23-year mortgage loan for $464,103 with an interest rate of 6% and...
A borrower has a 23-year mortgage loan for $464,103 with an
interest rate of 6% and monthly payments. If she wants to pay off
the loan after 9 years, what would be the outstanding balance on
the loan?
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