Suppose you take a 27-year mortgage of $280000. The annual interest rate is 4%, and the...

Suppose you take a 27-year mortgage of $280000. The annual interest rate is 4%, and the annual APR is 4.6%. Compounding done on yearly basis. Loan payments are made annually. Calculate the amortized fees and expenses for this loan (in dollars, provide your answer with $1 precision).

Expert Solution

Calculate the payment is interest rate is 4%:

Therefore, payment is $17,146.79.

Calculate the payment is interest rate is 4.6%:

Therefore, payment is $18,319.48.

------------------------------------------

Calculate the Fee:

Fee = Difference of annual payments

= $18,319.48 - $17,146.79

= $1,172.69

Therefore, the fee is $1,172.69 or $1,173.

jeff jeffy answered 1 year ago

Suppose you take a 21-year mortgage of $110000. The annual interest rate is 4%, and the...

Suppose you take a 21-year mortgage of $110000. The annual interest rate is 4%, and the annual APR is 4.24%. Compounding done on yearly basis. Loan payments are made annually. Calculate the amortized fees and expenses for this loan (in dollars, provide your answer with $1 precision).

Suppose you take out a 30 year mortgage for $460000 at an annual interest rate of...

Suppose you take out a 30 year mortgage for $460000 at an annual interest rate of 3.5%. You plan to sell the house after 10 years. Question 1 How much do you owe on the house after five years? Question 2 How much do you owe on the house after ten years? After five years you have the opportunity to refinance what you owe at an interest rate of 3.25% for 30 years. Question 3 How much would you gain...

Suppose you take out a 30 year mortgage for $490000 at an annual interest rate of...

Suppose you take out a 30 year mortgage for $490000 at an annual interest rate of 4.0%. You plan to sell the house after 10 years. Question 1 How much do you owe on the house after five years?(No Response) Question 2 How much do you owe on the house after ten years?(No Response) After five years you have the opportunity to refinance what you owe at an interest rate of 3.75% for 30 years. Question 3 How much would...

1. Suppose you take out a 30-year mortgage for $207,418 at an annual interest rate of...

1. Suppose you take out a 30-year mortgage for $207,418 at an annual interest rate of 3.1%. After 20 years, you refinance to an annual rate of 2.0%. How much interest did you pay on this loan? Round your answer to the nearest dollar. _____________________ 2. Consider a 20-year mortgage for $183,858 at an annual interest rate of 4.9%. After 10 years, the mortgage is refinanced to an annual interest rate of 2.9%. What are the monthly payments after refinancing?...

Suppose you take out a 30-year mortgage for $197,298 at an annual interest rate of 3.1%....

Suppose you take out a 30-year mortgage for $197,298 at an annual interest rate of 3.1%. After 16 years, you refinance to an annual rate of 1.3%. How much interest did you pay on this loan?

Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of...

Suppose that you take out a 30-year mortgage loan of $200,000 at an interest rate of 10%. What is your total monthly payment? How much of the first month’s payment goes to reduce the size of the loan? If you can afford to pay $2,000 per month, how long would it take you to pay for this loan (still at 10% interest)? If you can only pay $1,700 per month, and still want to finish paying in 30 years, what...

You take out a 30-year $500,000 mortgage at an effective annual interest rate of 8%. Immediately...

You take out a 30-year $500,000 mortgage at an effective annual interest rate of 8%. Immediately after your 12th payment, you make an additional principal repayment of $50,000, and then refinance the outstanding balance with a new 15-yeatr mortgage at a 4% effective annual interest rate. Both mortgages require annual year-end level amortization payments. Find the amount of interest in the 5th payment of the new mortgage. PLEASE NO EXCEL!!!! :)

Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 8.2%....

Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 8.2%. The annual property tax bill is $978 and the annual fire insurance premium is $491. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%....

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%. The annual property tax bill is $971 and the annual fire insurance premium is $481. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Suppose you obtain a 20-year mortgage loan of $199,000 at an annual interest rate of 8.1%....

Suppose you obtain a 20-year mortgage loan of $199,000 at an annual interest rate of 8.1%. The annual property tax bill is $966 and the annual fire insurance premium is $487. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.) $_______________

Question