Question

In: Finance

A homeowner can obtain a 250,000, 30 year fixed rate mortgage at a rate of 6.0%...

A homeowner can obtain a 250,000, 30 year fixed rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25 points. How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?

Solutions

Expert Solution

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with...
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points. How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is NOT invested? please answer in excel format
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero...
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0% with zero points or at a rate of 5.5% with 2.25 points. How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested? A. 7.15 years B. 6.04 years C. 7.53 years D. 5.90 years
a homeowner can obtain 250,000, 30 year fixed mortgage at a rate of 6% with zero...
a homeowner can obtain 250,000, 30 year fixed mortgage at a rate of 6% with zero points or at a rate of 5.5% with 2.25 points. IF you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 3.25 percent with...
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 3.25 percent with monthly payments. How much principal and interest will she pay in the 27th monthly payment?
a homeowner can obtain a 500,000 thirty year fixed rate mortgage at a rate of 3.0%...
a homeowner can obtain a 500,000 thirty year fixed rate mortgage at a rate of 3.0% with zero points or at a rate of 2.75% with 2 points. if you will keep the mortgage for 30 years what is the net present value of paying the points to the nearest dollars 1.)9,475 2.)8,360 3.) 6,366 4.)7,616 5.) 5,240
- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with...
- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 10 years? - What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 1 year?
- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with...
- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 10 years? - What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 1 year? - You have two options for a 30 year fixed rate mortgage: $500,000 mortgage, 5% rate $500,000 mortgage, 4.50% rate, 2 discount points For how long...
A homeowner took out a 30-year, fixed-rate mortgage of $145,000. The mortgage was taken out 6...
A homeowner took out a 30-year, fixed-rate mortgage of $145,000. The mortgage was taken out 6 years ago at a rate of 8.4 percent. If the homeowner refinances, the charges will be $2,550. What is the highest interest rate at which it would be beneficial to refinance the mortgage? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
A homeowner takes a 30-year fixed-rate mortgage for $150,000 at 7.9 percent. After eleven years, the...
A homeowner takes a 30-year fixed-rate mortgage for $150,000 at 7.9 percent. After eleven years, the homeowner sells the house and pays off the remaining principal. How much is the principal payment?
A homeowner paid a fixed 3% on a 30-year mortgage of $200,000. 11a. Calculate the monthly...
A homeowner paid a fixed 3% on a 30-year mortgage of $200,000. 11a. Calculate the monthly mortgage payment. [10 points] 11b. Calculate the total interest payment over this 30-year period. [5 points] 11c. In the third monthly mortgage payment, calculate the interest payment. [5 points] 11d. In the fourth monthly mortgage payment, calculate the principal payment.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT