: Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in...

: Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March 2018. The sale price of the house is $336,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2018 for a total of 30 years.

(1) Calculate the required monthly mortgage payment for Mr. Davidson.

(2) Construct the 2018~2047 amortization table for Mr. Davidson.

(1) Mr. Davidson should prepare his 2018 tax filings in early 2019. Please compute the total mortgage interest payments which he can use for his 2018 tax deductions.

Solutions

Expert Solution

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March...

Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March 2018. The sale price of the house is $336,000. He plans to pay 20% down payments and borrow additional 80% from Wells Fargo with a 30-year, 4.375% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from April 2018 for a total of 30 years. (1) Calculate the required monthly mortgage payment for Mr. Davidson. (2) Construct the 2018~2047 amortization...

Mortgage Loan Analysis: A resident in Victoria is planning to buy a new house in March...

Mortgage Loan Analysis: Mr. Davidson plans to buy a new house at Sugar Land in June...

Mortgage Loan Analysis: Mr. Davidson plans to buy a new house at Sugar Land in June 2019. The sale price of the house is $500,000. He plans to pay 20% down payments and borrow additional 80% from Bank of America with a 30-year, 3.875% fixed-rate mortgage loan. He is expected to pay an equal MONTHLY payment starting from July 2019 for a total of 30 years. (1) Calculate the required monthly payment for Mr. Davidson. (2) Construct 2019~2021 amortization table...

You decide to buy a house for a total of $214452. To get a mortgage loan,...

You decide to buy a house for a total of $214452. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 5% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage?

You are planning to buy a house appraised for $350,000 and finance it through a mortgage...

You are planning to buy a house appraised for $350,000 and finance it through a mortgage of $300,000. What is the loan-to-value ratio and is it be above or below the normal cutoff set by your lender of 80 percent for a prime mortgage? Being securely employed, your take-home pay is $2,300 per month and you have no substantial other debts. Your lender has offered you a 2.5 percent, 30 year, fixed-rate mortgage. What is the amount that you will...

1.You decide to buy a house for a total of $198842. To get a mortgage loan,...

1.You decide to buy a house for a total of $198842. To get a mortgage loan, you make a 10% down payment, and the bank will lend you the rest. The interest rate quoted for this loan is 6% APR, and the loan will be paid (and interest compounded) every month, for the next 30 years. How much is the TOTAL monthly payment for this mortgage? 2.A company has $96 million in outstanding bonds, and 10 million shares of stock...

You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge...

You have borrowed $56000 as a mortgage loan to buy a house. The bank will charge interest at the rate of 9% annually and requires a minimum monthly payment of $500. At the end of five years, you must pay off the entire mortgage by a “balloon payment”. You plan to pay only the minimum amount each month and then pay off the loan with the final payment. Find this balloon payment. (Answer: $49966.07) please answer in excel format

You borrow $149000 to buy a house. The mortgage rate is 7.5% and the loan period...

You borrow $149000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years. Payments are made monthly. What is the monthly mortgage payment.

The bank has agreed to give you a mortgage for $400,000 to buy a new house....

The bank has agreed to give you a mortgage for $400,000 to buy a new house. Current mortgage rates have an APR of 4% compounded semi-annually for a term of 25 years. How much interest will you pay in total over the life of the loan? Select one: a. $121,433.25 b. $143,645.25 c. $231,224.25 d. $237,378.25 e. None of the above.

Question 3: Floating Rate Mortgage (8 marks) John is planning to buy a house worth $450,000,...

Question 3: Floating Rate Mortgage John is planning to buy a house worth $450,000, has $100,000 in savings that he will use as adown-payment and will borrow the remainder via a mortgage. He selects a floating rate, closed mortgage with a 3 year term and 25 year amortization period. He will make monthly payments and be charged an interest rate of 3.35% p.a., compounded semi-annually. Part A: How much will John owe after 1 year has passed if interest rates...

Subjects