Consider a 30-year, traditional mortgage on a $200,000 property. With 30% down payment and a 4%...

Consider a 30-year, traditional mortgage on a $200,000 property. With 30% down payment and a 4% APR. Mortgage payments are made monthly. What is the 214th payment?

Solutions

Expert Solution

EMI = Loan Amount / PAVf (r%, n)

PVAF = Sum (PVF(r%, n))

Loan = Purchase Price * ( 1 - Down Payment % )

= $ 200000 * (1 - 0.3)

= $ 200000 * 0.7

= $ 140000

= $ 140,000 / PVAF ( 0.3333%, 360 )

= $ 140000 / 209.4612

= $ 668.38

Loan Amortization:

Month	Opening Bal	Instalment	Int	Principal Repay	Closing Balance
209	$ 79,602.54	$ 668.38	$ 265.34	$ 403.04	$ 79,199.50
210	$ 79,199.50	$ 668.38	$ 264.00	$ 404.38	$ 78,795.11
211	$ 78,795.11	$ 668.38	$ 262.65	$ 405.73	$ 78,389.38
212	$ 78,389.38	$ 668.38	$ 261.30	$ 407.08	$ 77,982.30
213	$ 77,982.30	$ 668.38	$ 259.94	$ 408.44	$ 77,573.86
214	$ 77,573.86	$ 668.38	$ 258.58	$ 409.80	$ 77,164.06
215	$ 77,164.06	$ 668.38	$ 257.21	$ 411.17	$ 76,752.89

From Above One, 214th Payment:

EMI = 668.38

Int = 258.58

Principla Repay = 409.80

Outstanding Bal = 77164.06

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage...

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage interest rate is 4.125%. How much is the monthly payment? How much will the borrower pay in total interest?

Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume...

Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume up front financing cost (includes all costs paid to the lender and third parties except discount points) equal $3,000. Find the EBC if the borrower repays the loan after two years (assuming no direct points). What is the EBC if the lender charges one discount point? What is the EBC if the lender charges 2.5 discount point?

Consider a home mortgage problem. The house in question will cost $200,000. The down payment is...

Consider a home mortgage problem. The house in question will cost $200,000. The down payment is 20%, or $40,000, which means the loan will be for $160,000. The loan will be a 15-year loan. The annual interest rate (APR) is 3.5%. Payments to the bank are monthly. Address the following: Compute the monthly loan payment Construct a loan amortization schedule for the life of the loan In addition to the monthly loan payments, it is estimated that the following outflows...

Assuming a 5/1 ARM, calculate the monthly mortgage payment on a 30 year $200,000 mortgage with...

Assuming a 5/1 ARM, calculate the monthly mortgage payment on a 30 year $200,000 mortgage with an initial rate of 2.75%, a rate of 4% at the time of the first adjustment, a rate of 5% at second adjustment and a rate of 4% at the third adjustment.

Value of the house 200,000. You are using a 30-year mortgage. Also, you are putting down...

Value of the house 200,000. You are using a 30-year mortgage. Also, you are putting down 20%. You have two options: a. Mortgage rate of 4.5% with no points. b. Mortgage rate of 4.35% and 1.5 points. Which option should you choose?

Consider a 15 year mortgage with a 3% APR interest rate and a 20% down payment...

Consider a 15 year mortgage with a 3% APR interest rate and a 20% down payment if you can afford a $1500 monthly payment, how expensive a house can you buy? a. $254,250 b. $217,208 c. $271,510 d. $298,402

You take out a 30-year mortgage to buy a house worth $449,000. The down payment is...

You take out a 30-year mortgage to buy a house worth $449,000. The down payment is 7% and the annual interest rate is 4.9%. What are the monthly payments? Round to the nearest cent.

You take out a 30-year mortgage to buy a house worth $312,000. The down payment is...

You take out a 30-year mortgage to buy a house worth $312,000. The down payment is 21% and the annual interest rate is 4.4%. What are the monthly payments? Round to the nearest cent.

You take out a 30-year mortgage to buy a house worth $396,000. The down payment is...

You take out a 30-year mortgage to buy a house worth $396,000. The down payment is 19% and the annual interest rate is 4.9%. What are the monthly payments? Round to the nearest cent.

Bo Horvat bought a property valued at $1,170,000.00 with $170,000.00 down payment and a mortgage amortized...

Bo Horvat bought a property valued at $1,170,000.00 with $170,000.00 down payment and a mortgage amortized over 25 years. He makes equal payments due at the end of every month. Interest on the mortgage is 4.85% compounded semi-annually and the mortgage is renewable after five years. a) What is the size of each monthly payment? b) What is the outstanding balance at the end of the first five-year term? P1 = P2 = Bal = c) What is the total...

Subjects