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 ?
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 .what would the effective rate be ?
Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate. After 28 years, you would like to sell the property. What is your loan balance at the end of 28 years? Assume that you have a 30 year fully-amortized fixed rate mortgage for your home. Your loan amount is $300,000 with a 3% annual interest rate and your balloon payment is $50,000. What is your...
You just bought a house and have a mortgage of $200,000. The mortgage is for 30 years and has a mortgage rate of 8 percent annually. After 36 payments (3 years ). What will be the remaining balance on your mortgage? What is the cumulative interest you have paid over the 36 periods?
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...
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?
Ten years ago you obtained a 30-year mortgage for $400,000 with a fixed interest rate of 3% APR compounded monthly. The mortgage is a standard fixed rate mortgage with equal monthly payments over the life of the loan. What are the monthly fixed mortgage payments on this mortgage (i.e., the minimum required monthly payments to pay down the mortgage in 30 years)? What is the remaining loan balance immediately after making the 120th monthly payment (i.e., 10 years after initially...
You have just purchased a house and have obtained a 15-year, $200,000 mortgage with an interest rate of 10 percent. Use Excel and show all work—use formulas where useful—do not just key in answers. Assume annual payments and use tables provided. Required: What is your annual payment? Assuming you bought the house on January 1, what is the principal balance after one year? After 10 years? After four years, mortgage rates drop to 8 percent for 15-year fixed-rate mortgages. Assume...
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...
Your local lender offers you a fixed-rate mortgage with the following terms: $220,000 at 4.75% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 3% prepayment penalty. A. (1 pt) What is the annual percentage rate (APR) of the loan? Answer: _______ B. (1 pt) How many points are required to yield an APR of 5.25%? Answer: _______ Suppose you take a fixed-rate mortgage for $200,000 at 5.00% for 30 years,...
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