a) Monthy payment: $1054.01
b) New monthly payment: $2370.97
c) New monthly payment: $2367
d) Total interest payment: $527567
You want to buy a house and take out a mortgage for $250,000. The only mortgage...
11. Suppose that you take out a $250,000 house mortgage from your local savings bank. The bank requires you to repay the mortgage in equal annual installments over the next 30 years. Suppose that the interest rate is 5% a year. Then what is the amount of mortgage payment each year? (a) $16,263 (b) $13,452 (c) $12,583 (d) $10,127 12. Consider a borrower that is approved for a standard 15-year, fully amortizing house mortgage with an original balance of $500,000...
A. You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $750,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan’s annual percentage rate or APR). Under this loan proposal, your mortgage payment will be _________per month. (Note:...
You borrow money (take out a mortgage) to buy a house. You borrow $800,000 which you will pay back with 10 equal payments made at the end of each of the next 10 years. The annual interest rate is 7 percent. Your first payment will be ____ principal payment, and _____ interest paid.
1. You have just purchased a new house and taken a mortgage for $100,000. The interest rate is 12% compounded monthly and you will make payments for 25 years. a) Find the size of the monthly payment. b) The bank has a policy of rounding the payments up to the next cent. Find the new monthly payment and compute a new n. c) What was the balance of the loan after three periods? d) How much of your third payment was Principal? Interest? e) How much did...
Suppose you take out a 20-year mortgage for a house that costs $465,110. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 13% at the time of the loan. The annual property tax is 2.3% of the cost of the house. The annual homeowner's insurance is 1.2% of the cost of the house. The monthly PMI is $66 Your other long-term debts require payments of $657 per month. If...
You want to buy a house that costs $280,000. You will make a down payment equal to 15 percent of the price of the house and finance the remainder with a loan that has an interest rate of 5.47 percent compounded monthly. If the loan is for 25 years, what are your monthly mortgage payments?
Suppose you take out a 20-year mortgage for a house that costs $368851. Assume the following: · The annual interest rate on the mortgage is 4%. . The bank requires a minimum down payment of 14% at the time of the loan. The annual property tax is 2.2% of the cost of the house. The annual homeowner's insurance is 0.6% of the cost of the house. . · The monthly PMI is $78 Your other long-term debts require payments of...
Suppose you take out a 20-year mortgage for a house that costs $472858. Assume the following: The annual interest rate on the mortgage is 4%. The bank requires a minimum down payment of 20% at the time of the loan. The annual property tax is 2.1% of the cost of the house. The annual homeowner's insurance is 1.5% of the cost of the house. The monthly PMI is $70 Your other long-term debts require payments of $899 per month. If...
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...
Q3: Mike decide to take the mortgage loan to buy a house with total price of $200,000.He made 50,000 for down payment. He decided to pay back the money every quarter in the equal amount. What should be his equal quarterly payment be over the next 20 years if the annual interest rate is 7%? Q4: You want to buy a car, and a bank will lend you $30,000. The loan would be fully amortized over 3 years (36 months),...