If you obtain a $200,000. 30 year fixed rate mortgage at 6% with two points at closing .what would the effective rate be ?
If you obtain a $200,000. 30 year fixed rate mortgage at 6% with two points at...
If you obtain a $200,000. 30 year fixed rate mortgage at 6% with two points at closing but sold your house and paid off the mortgage after five years. what were the effective interest rate be over this five-year period ?
2. Consider the following two choices for a $145,000 mortgage loan Choice - 30-year fixed-rate APR of 4.25% with closing costs of $1450 and 2 points Choice 2, 15-year fix-rate APR of 4.05% with closing costs of $16.00 and I point @ What are the total closing costs for each choice? Choice c om .0010 Choice 2 (b) Which loan would you choose and why?
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?
Suppose you have two options on a $150,000, 30-year, fixed-rate mortgage. Option one is a 5.25% contract rate with 2.00 points. Option two is 5.00% contract rate but you have forgotten how many discount points are charged. Both loans have a 3% prepayment penalty for the first eight years of life. A. (1 pt) Calculate the number of points on option two that would equalize the APRs of the two loans. Answer: ________ B. (1 pt) Calculate the number of...
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 invested monthly? Question 8 options: A) 6.04 years B) 7.15 years C) 3.33 years D) 5.90 years E) more than 30 years
You financed your $300,000 home with a $200,000 mortgage. If the mortgage has a fixed 6% APR with interest compounded monthly (ie, with a 0.5% periodic rate), and if the mortgage is for 30 years, what is the total interest paid over the course of the loan?
Suppose that you are considering a conventional, fixed-rate 30-year mortgage loan for $100,000. The lender quotes an APR of 4.71%, compounded monthly; mortgage payments would be monthly, beginning one month after the closing on your home purchase. What would be your monthly mortgage payment?
You borrow $500,000 to purchase a house. The mortgage is a 30-year fixed rate mortgage, with monthly payments. A. Assume that you have good credit, and can borrow money at a 3.75% annual interest rate. What will your monthly payment be? B. Now, assume that you have lousy credit, and must pay a 6.5% annual interest rate to obtain a mortgage. What will your monthly payment be? C. Having lousy credit can be costly. How much additional interest will you...
A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 3.0 percent with zero points or at a rate of 2.85 percent with 1 point. What is the net present value of paying the points? Select one: O a. $4,526 O b. $3,792 O c. $2,500 O d. $0 O e. $2,362 The quoted ask yield on a 12 year $1000 par T-Bond with a 5% coupon and a price quote of 106-10 is (use semiannual compounding)...
2. (25 Points) Suppose a borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan have a "teaser" rate of 4%, after that, the rate can reset with a 2% annual rate cap. On the reset date, the composite rate is 7%. What would the Year 3 monthly payment be? (15 points) Step I Step2 PV= -179084.11 PV = -200 000 I= 7412=10.58) I=47212= 10.33) N= 336 N=360 130x2)...