A mortgage broker is offering a 30 year $271,000 mortgage with
a teaser rate in the...
A mortgage broker is offering a 30 year $271,000 mortgage with
a teaser rate in the first two years of the mortgage the borrower
makes monthly payments on only 3.7% APR interest rate. After the
second year, the mortgage interest rate charged increase to 6.7%
APR
What are the monthly payments in the first two years? Do not
round intermediate calculations and round your final answer to 2
decimal places.
What are the monthly payments after the second year? Do not
round intermediate calculations and round your final answer to 2
decimal places.
Solutions
Expert Solution
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also. Thank you.
Teaser Rate Mortgage A mortgage broker is
offering a 30-year mortgage with a teaser rate. In the first two
years of the mortgage, the borrower makes monthly payments on only
a 5.6 percent APR interest rate. After the second year, the
mortgage interest charged increases to 9.2 percent APR. What is the
effective interest rate in the first two years? What is the
effective interest rate after the second year?
5.60%, 9.20% respectively
5.75%, 9.60% respectively
5.49%, 8.92% respectively
13.19%,...
A mortgage broker is offering a $281,000 20-year mortgage with a
teaser rate. In the first two years of the mortgage, the borrower
makes monthly payments on only a 4.7 percent APR interest rate.
After the second year, the mortgage interest rate charged increases
to 7.7 percent APR.
What are the monthly payments in the first two years?
(Do not round intermediate calculations. Round your final
answer to 2 decimal places.)
Monthly payment
$
What are the...
A mortgage broker is offering a $284,000 20-year mortgage with a
teaser rate. In the first two years of the mortgage, the borrower
makes monthly payments on only a 5.0 percent APR interest rate.
After the second year, the mortgage interest rate charged increases
to 8.0 percent APR.
What are the monthly payments in the first two years?
What are the monthly payments after the second year
A mortgage broker is offering a 25-year $270,000 mortgage with a
teaser rate. In the first two years of the mortgage, the borrower
makes monthly payments on only a 3.6 percent APR interest rate.
After the second year, the mortgage interest rate charged increases
to 6.6 percent APR.
1) What are the monthly payments in the first two years?
2) What are the monthly payments after the second year?
P.s. Previous expert answered 1) 1,366.221 - and it was correct...
Problem 5-55 Teaser Rate Mortgage (LG5-9) A mortgage broker is
offering a 25-year $180,900 mortgage with a teaser rate. In the
first two years of the mortgage, the borrower makes monthly
payments on only a 3.7 percent APR interest rate. After the second
year, the mortgage interest rate charged increases to 6.7 percent
APR. What are the monthly payments in the first two years? (Do not
round intermediate calculations and round your final answer to 2
decimal places.) What are...
A 30-year variable-rate mortgage offers a first-year teaser rate
of 2%. After that, the rate starts at 4.5%, adjusted based on
actual interest rates. The maximum rate over the life of the loan
is 10.5%, and the rate can increase by no more than 200 basis
points a year. If the mortgage is for $250,000, what is the monthly
payment during the first year? Second year? What is the maximum
payment during the fourth year? What is the maximum payment...
Oppenheimer Bank is offering a 30-year mortgage with an APR of
5.06 % based on monthly compounding. With this mortgage your
monthly payments would be $ 1 comma 972 per month. In addition,
Oppenheimer Bank offers you the following deal: Instead of making
the monthly payment of $ 1 comma 972 every month, you can make
half the payment every two weeks (so that you will make 52 divided
by 2 equals 26 payments per year). With this plan, how...
Ironwood Bank is offering a 30?-year mortgage with an APR of
5.90 % based on monthly compounding. If you plan to borrow $
165,000?, what will be your monthly? payment?
the difference between the 30 year mortgage rate and the 30-year
treasury bond rate is primary attribute to
a. interest rate risk
b. reinvestment rate risk
c. credit risk
d. insurance risk