Explain how such factors as home value, down payments, mortgage types, and interest rates affect the...

Explain how such factors as home value, down payments, mortgage types, and interest rates affect the total monthly mortgage payment. Explain if any of these factors surprise you and the reasons why. What strategies could you take to pay the least amount for a house (or healthcare facility) over the life of the loan?

Expert Solution

These factors which are been listed will be used as a measure for affecting the overall monthly mortgage-

A. Home value -when there is higher amount of home value, then monthly payment will be associated with the mortgage payment would be certainly higher

B. Down payment-when there is a higher amount of down payment, then the mortgage payment which should be paid on the monthly basis would be higher.

C. Mortgage types-the type of mortgage is also important while deciding upon the amount of monthly mortgage payment, because various types of mortgages are fixed and variable in nature and nature of the mortgages always decide the amount of the monthly payment

D. Interest rates-interest rate is always been decided by the Federal Reserve and passed on to, by the commercial banks & always have an important impact on the mortgage payments because the higher interest rate, higher will be the monthly mortgage payment.

interest rate plays a very important role and it will surprise me always because it is highly fluctuating nature due to the nature of monetary policy of federal reserve and which is not certain in nature.

I will be trying to proactively manage the amount of the mortgage payment and I will try to amortize it over the period of the loan and pay it as early as possible in order to avoid the the burden and stress of late payments and interest will be low also

jeff jeffy answered 1 year ago

Mortgage interest rates and home prices 30-year mortgage rates year interest rate (%) Median home price...

Mortgage interest rates and home prices 30-year mortgage rates year interest rate (%) Median home price 1988 10.30 183,800 1989 10.30 183,200 1990 10.10 176,900 1991 9.30 173,500 1992 8.40 172,900 1993 7.30 173,200 1994 8.40 173,200 1995 7.90 169,700 1996 7.60 174,500 1997 7.60 177,900 1998 6.90 188,100 1999 7.40 203,200 2000 8.10 230,200 2001 7.00 258,200 2002 6.50 309,800 2003 5.50 329,800 1. Generate two separate scatter plots, following the requirements below, with the data provide. a. year...

Discuss, with examples, how the market interest rates affect the value of bonds.

Explain the factors that determines interest rates?

Identify the other macroeconomic factors that affect the general level of interest rates and discuss how...

Identify the other macroeconomic factors that affect the general level of interest rates and discuss how each of these factors affects interest rates

Explain how inflation and interest rates affect the capital budgeting process?

1. Explain how factors affecting bond market is able to explain the movement of interest rates?(...

1. Explain how factors affecting bond market is able to explain the movement of interest rates?( 15 marks) 2. Why in the long run, the profits of holding a domestic financial assets is equivalent to the profits of holding a foreign assets? ( 20 marks)

What is interest rate? Explain the 4 factors that determine the level of interest rates. Explain...

What is interest rate? Explain the 4 factors that determine the level of interest rates. Explain what effect each of the following events would likely to have on the level of interest rates: a. Households dramatically reduce their current consumptions. b. Corporations increase their demand for funds following increased investment opportunities. c. Inflation is expected to decrease. Definitions. Complete the following statements: Risk premium that indicates the ease of a bond to be converted to cash on short notice at...

Interest on a home mortgage is tax deductible. Explain why interest paid in the early years...

Interest on a home mortgage is tax deductible. Explain why interest paid in the early years of a home mortgage is more helpful in reducing taxes than interest paid in later years.

Discuss five environmental factors that affect your business. Explain the factors by listing down the reasons...

Discuss five environmental factors that affect your business. Explain the factors by listing down the reasons in points. Also, mention how personal selling will be helpful to improve your business. Should be written in 500 words and above. Should be submitted in word file and not in hand written format

How do interest rates affect our lives? Interest rates are one way to express the price,...

How do interest rates affect our lives? Interest rates are one way to express the price, or cost, of money obtained from someone else. For example, your credit card lends you money every time you make a purchase. Think about how interest rates affect your personal financial behavior with regard to spending and saving. Think also about the relationship between changing interest rates and longer-term interest-bearing securities (bonds, mortgages, etc.), and how interest rates affect our lives in general. Answer...

Question