Q1. You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local...

Q1. You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25%. You will make a down payment of 20 percent of the purchase price. Calculate your monthly payments on this mortgage. Calculate the amount of interest and, separately, principal paid in the 25th payment. Calculate the amount of interest and, separately, principal paid in the 225th payment. Calculate the amount of interest paid over the life of this mortgage.

Expert Solution

jeff jeffy answered 1 year ago

You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. (LG 7-3) a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 9 percent and zero points. Option 2: Mortgage rate of 8.85 percent and 2 points. Which option should you choose? b. Your bank offers...

You plan to purchase a house for $200,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $200,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 25 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? Option 1: Mortgage rate of 5.60 percent and...

You plan to purchase a house for $230,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $230,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 25 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment: Which option should you choose? Option 1: Mortgage rate of 5.90 percent and...

You plan to purchase an $100,000 house using a 15-year mortgage obtained from your local bank....

You plan to purchase an $100,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate offered to you is 4.5 percent. You will make a down payment of 10 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 80th payment. c. Calculate the amount of interest and, separately, principal paid in the 110th payment. d. Calculate the amount of interest...

You plan to purchase a $200,000 house using a 30-year mortgage obtained from your local credit...

You plan to purchase a $200,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.50 percent. You will make a down payment of 20 percent of the purchase price. (LG 7-4) a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the first six payments. please show in excel

You plan to purchase a $270,000 house using either a 30-year mortgage obtained from your local...

You plan to purchase a $270,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.45 percent, or a 15-year mortgage with a rate of 6.60 percent. You will make a down payment of 25 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? b. Calculate your monthly payments on the two mortgages. What is the difference...

ou plan to purchase a $170,000 house using a 30-year mortgage obtained from your local credit...

ou plan to purchase a $170,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 6.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Monthly payment $ b. Construct the amortization schedule for the first six payments. (Do not round intermediate calculations. Round...

You plan to purchase a house for $175,000 using a 15-year mortgage obtained from your local...

You plan to purchase a house for $175,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 25 percent of the purchase price. You will not pay off the mortgage early. (LG 7-3) a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 5 percent and zero points. Option 2: Mortgage rate of 4.75 percent and 2 points. Which option should you choose? b. Your bank offers...

You plan to purchase a house for $200,000 using a 15-year mortgage obtained from your local...

You plan to purchase a house for $200,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 10 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? Option 1: Mortgage rate of 6.25 percent and...

You plan to purchase a house for $247,000 using a 15-year mortgage obtained from your local...

You plan to purchase a house for $247,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? Option 1: Mortgage rate of 6.8 percent and...

Question