Question
In: Finance
You plan to purchase a house for $127,000 using a 15-year mortgage obtained from your local...
You plan to purchase a house for $127,000 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 5.75 percent and zero points.
- Option 2: Mortgage rate of 5.45 percent and 2 points.
b. Your bank offers you the following two options for payment. Which option should you choose?
- Option 1: Mortgage rate of 6.25 percent and 2 point.
- Option 2: Mortgage rate of 6 percent and 2.5 points.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
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for the full term and ignore taxes in your analysis.
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Calculate the amount of interest and, separately, principal paid
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You plan to purchase a $150,000 house using a 15-year mortgage obtained from your local credit...
You plan to purchase a $150,000 house using a 15-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 10 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.
Calculate the amount of interest and, separately, principal paid
in the 20th payment. (Do not...
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Calculate the amount of interest and, separately, principal paid
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305.72 and 611.71
3057.20 and 6117.10
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You plan to purchase a $150,000 house using a 15-year mortgage obtained from your local credit...
You plan to purchase a $150,000 house using a 15-year mortgage
obtained from your local credit union. The mortgage rate offered to
you is 6.75 percent. You will make a down payment of 15 percent of
the purchase price.
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mortgage.
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separately, principal paid in the 60th payment.
c. Calculate the amount of interest and,
separately, principal paid in the 150th payment.
d. Calculate the amount of...
You plan to purchase an $80,000 house using a 15-year mortgage obtained from your local bank....
You plan to purchase an $80,000 house using a 15-year
mortgage obtained from your local bank. The mortgage rate offered
to you is 8.00 percent. 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 4th payment.
Calculate the amount of interest paid over the life of
this mortgage.
You plan to purchase a $150,000 house using a 15-year mortgage obtained from your local credit...
You plan to purchase a $150,000 house using a 15-year mortgage
obtained from your local credit union. The mortgage rate offered to
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the purchase price.
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$
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Calculate the amount of interest and, separately, principal paid
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Construct the amortization schedule for the first six payments.
(Do not round intermediate calculations. Round your answers to 2
decimal places. (e.g., 32.16))...
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