You are interested in purchasing a $400,000 home. Interest rates are currently about 4.0% for 30...

You are interested in purchasing a $400,000 home. Interest rates are currently about 4.0% for 30 year loan. Ignoring taxes, insurance, and any possible mortgage insurance, if you put down 5%, what will your payment be? If you choose a 15 year mortgage instead, the interest rate will be 3.5%. What will your payment be with the 15 mortgage?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing was mentioned excel is used. If you need with formula, let me know, will do that also. Thank you.

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...

You and your spouse are considering purchasing a home. The home you are purchasing is $231,250....

You and your spouse are considering purchasing a home. The home you are purchasing is $231,250. You plan on offering full price today. You have a 10% down payment and your are financing the remaining balance for 30 years. (Round off the amount you are financing to nearest dollar.) You have checked with several lenders and find the best rate to be 4.5% for 30 years. In order to qualify for the loan the lender tells you that your front...

You are interested in purchasing the Malibu home (sale price of $12,000,000, mortgage rate of 3.955%,...

You are interested in purchasing the Malibu home (sale price of $12,000,000, mortgage rate of 3.955%, 30% down payment, 30 year fixed mortgage). How much principal would you pay [ Select ] ["$25,646", "$12,240", "$25,158", "$12,816"] during month 2? How much would your monthly payment go up today [ Select ] ...

Suppose you borrowed $400,000 for a home mortgage on January 1, 2010 with an annual interest...

Suppose you borrowed $400,000 for a home mortgage on January 1, 2010 with an annual interest rate of 3.5% per year compounded monthly. (a) If you didn't make any payments and were only charged the interest (and no late fees), how much would you owe on the mortgage on January 1, 2030? (b) Suppose the balance on the mortgage is amortized over 20 years with equal monthly payments at the end of each month. (This means the unpaid balance on...

You are interested in purchasing a bond with three years to maturity and semiannual interest payments....

You are interested in purchasing a bond with three years to maturity and semiannual interest payments. The bond has a 7% coupon rate and a 9% yield to maturity. The bond has a $1,000 par value. What is the bond’s duration in years?

Emily is considering purchasing a new home for $400,000. She intends to put 20% down and...

Emily is considering purchasing a new home for $400,000. She intends to put 20% down and finance $320,000, but is unsure which financing option to select. Emily is considering the following options: o Option 1: Fixed rate mortgage over 30 years at 6% interest, zero points, or o Option 2: Fixed rate mortgage over 30 years at 4% interest, plus two discount points. How long would her financial planner recommend that she live in the house to break even using...

Suppose that the unemployment rate is currently 4.0%. If the government increases tax rates (ceteris paribus),...

Suppose that the unemployment rate is currently 4.0%. If the government increases tax rates (ceteris paribus), what will happen? Answer your question using Keynesian economics. RGDP will fall RGDP will rise RGDP will stay the same RGDP could increase or stay the same RGDP could decrease or stay the same Suppose that people expect the prices of housing to rise. This will cause… Demand and supply for housing to increase Demand and supply for housing to decrease Demand for housing...

Tom’s home is currently valued, on a replacement cost basis, at $400,000. The last time he...

Tom’s home is currently valued, on a replacement cost basis, at $400,000. The last time he checked his home was insured for $300,000 and he did not have an inflation guard endorsement. If he has a $40,000 claim due to a kitchen fire, how much will his homeowner’s insurance policy pay? How much would he be paid if his home were totally destroyed? In order to obtain full replacement coverage, how much insurance should Tom carry on his house?

What happens to home prices as interest rates fluctuate? Have home prices recovered since rates have...

What happens to home prices as interest rates fluctuate? Have home prices recovered since rates have fallen since then to record lows in late 2010 and beyond?

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of...

Eight years ago you took out a $400,000, 30-year mortgage with an annual interest rate of 6 percent and monthly payments of $2,398.20. What is the outstanding balance on your current loan if you just make the 96th payment?

Question