Suppose you purchase your first home by making a $10,000 down payment on a debt of...
Suppose you purchase your first home by making a $10,000 down payment on a debt of $150,000. The bank charges an APR of 4.8% compounded monthly for a 30 year mortgage. Your monthly payment on the remaining $140,000 is $787.00.
(Do not enter $ sign and round answers to the nearest cent: Examples: 650.35, 12000.00)
a) You elect to payoff the entire loan after you pay 240 payments (120 payments remain). How much must you pay to payoff the loan at that time?
Answer: $
b) If the fair market value of the home at that time is $200,000, how much equity do you have in the home?
Answer: $
Homework Answers
The answer has been presented to the supporting sheet. All the parts has been solved with detailed explanation and calculation. For detailed answer refer to the supporting sheet.
Add Answer to:
Suppose you purchase your first home by making a $10,000 down
payment on a debt of...
A3-8 Suppose you want to borrow $200,000 to purchase a home. You have found terms that...
A3-8 Suppose you want to borrow $200,000 to purchase a home. You have found terms that include a 30-year note with a nominal rate of 7.0% com - pounded monthly. The loan includes payment of 2.5 points, which will be paid out of the loan at closing. One point is equal to 1% of the loan value.) A) Calculate the monthly mortgage payment. B) How much interest is paid in the 2nd month's payment? C) How much principal is paid...
You need a 20-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank...
You need a 20-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 6.1 percent APR for this 240-month loan. However, you can afford monthly payments of only $800, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at...
You want to buy a $200,000 home. You plan to pay 10% as a down payment,...
You want to buy a $200,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest. a. How much is the loan amount going to be? b. What will your monthly payments be if the interest rate is 5%? c. What will your monthly payments be if the interest rate is 6%?
1. İYou and your spouse have found your dream home. The selling price is $220,000; you...
1. İYou and your spouse have found your dream home. The selling price is $220,000; you will put $50,000 down and obtain a 30-year fixed-rate mortgage at 12% compounded monthly for the balance a) Assume that monthly payments begin in one month. What will each payment be? b) How much interest will you pay in dollars) over the lifetime of the loan? (Assume you make each of the required 360 payments on time.) c) Although you will get a 30-year...
Suppose you want to purchase a $287,000 home, and you have the required $64,000 down payment...
Suppose you want to purchase a $287,000 home, and you have the required $64,000 down payment in savings. Complete the table presented by a mortgage broker. Principal $223,000 Interest Rate 3.625% Terms (years) 20 Payment Total of Payments over Life of Loan Total Interest Paid over Life of Loan Complete the table below. (years) | Payment Total of Payments over Life of Loan Principal Interest | Terms Rate $223,000 3.625% 20 (Round to the nearest cent as needed.) Total Interest...
You want to buy a $229,000 home. You plan to pay 15% as a down payment,...
You want to buy a $229,000 home. You plan to pay 15% as a down payment, and take out a 30 year fixed loan for the rest. Round all answers to the nearest cent as needed. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6.1%? c) What will your monthly payments be if the interest rate is 7.1%?
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortga...
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
you want to purchase a home for $300,000. you have calculated that you can afford monthly...
you want to purchase a home for $300,000. you have calculated that you can afford monthly payments of $1300 for principal and interest and that you can obtain a 30 year mortgage with monthly payments at an APR of 4.5% how much is maximum loan amount? based on the loan amount, how much must your down payment be in order to purchase the home? Please show work and BAII Plus
You are buying a home and have saved $45,000 for a down payment. The house costs...
You are buying a home and have saved $45,000 for a down payment. The house costs $360,000. You are given a choice by the mortgage banker. You can use your entire $45,000 for the down payment, and borrow $315,000 at a 4.2% annual rate with monthly payments of about $1540 per month for 30 years (360 monthly payments). Or you can buy down the interest rate by paying an upfront fee to the lender of $8,000. This will reduce the...
You are planning on purchasing a $1,000,000 home with a 20% down payment. Assume 30 years...
You are planning on purchasing a $1,000,000 home with a 20% down payment. Assume 30 years for the mortgage. The bank quotes you a 6% interest rate (APR). (i) Calculate the monthly payment (ii) Calculate the EAR on the loan (iii) Amortize the first 2 payments
A3-8 Suppose you want to borrow $200,000 to purchase a home. You have found terms that include a 30-year note with a nominal rate of 7.0% com - pounded monthly. The loan includes payment of 2.5 points, which will be paid out of the loan at closing. One point is equal to 1% of the loan value.) A) Calculate the monthly mortgage payment. B) How much interest is paid in the 2nd month's payment? C) How much principal is paid...
You need a 20-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at a 6.1 percent APR for this 240-month loan. However, you can afford monthly payments of only $800, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at...
1. İYou and your spouse have found your dream home. The selling price is $220,000; you will put $50,000 down and obtain a 30-year fixed-rate mortgage at 12% compounded monthly for the balance a) Assume that monthly payments begin in one month. What will each payment be? b) How much interest will you pay in dollars) over the lifetime of the loan? (Assume you make each of the required 360 payments on time.) c) Although you will get a 30-year...
Suppose you want to purchase a $287,000 home, and you have the required $64,000 down payment in savings. Complete the table presented by a mortgage broker. Principal $223,000 Interest Rate 3.625% Terms (years) 20 Payment Total of Payments over Life of Loan Total Interest Paid over Life of Loan Complete the table below. (years) | Payment Total of Payments over Life of Loan Principal Interest | Terms Rate $223,000 3.625% 20 (Round to the nearest cent as needed.) Total Interest...
You want to buy a $229,000 home. You plan to pay 15% as a down payment, and take out a 30 year fixed loan for the rest. Round all answers to the nearest cent as needed. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 6.1%? c) What will your monthly payments be if the interest rate is 7.1%?
D) 7.9% You are considering purchasing a new home. You will need to borrow $270,000 to purchase the home. A mortgage company offers you a 20- year fixed rate mortgage at 6 % APR. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to: 14) A) $3094 B) $1934 C) $1547 D) $2708 5 A bank offers a loan that will requires you to pay 8% interest compounded semiannually. Which of the following...
Most questions answered within 3 hours.
-
A motor produces a torque of 0.25 N m at an angular velocity of
7200 revolutions...
asked 6 minutes ago -
***Please answer the below java question***
Are static methods inheritable? Can they be overridden?
asked 9 minutes ago -
In reaching her destination, a backpacker walks with an average
velocity of 1.13 m/s, due west....
asked 9 minutes ago -
Write two C programs that run a
server program and a client program concurrently.
Server program:...
asked 8 minutes ago -
Executive Program Practical Connection Assignment
Subject : Operations Security.
Assignment:
Provide a reflection of at least...
asked 18 minutes ago -
Every time Casey is at bat he has a 0.4 probability of
getting on base (assume...
asked 26 minutes ago -
The Walston Company is to be liquidated and has the following
liabilities:
Income taxes
$
9,400...
asked 33 minutes ago -
If
the more comprehensive data is available in MEPS, why does the NHIS
still exist? How...
asked 55 minutes ago -
Koo argues that the Japanese economy in the 1990s suffered from
a balance sheet recession. What...
asked 48 minutes ago -
Automobile mechanics conduct diagnosis tests on 150 new cars of
particular make and model to determine...
asked 42 minutes ago -
11) Find the proceeds of a 5 year non-interest
bearing note for $6500 discounted 2.5 years...
asked 49 minutes ago -
Required: Prepare the consolidated financial statements of
Griffin Ltd at 30 June 2019.
Griffin Ltd is...
asked 58 minutes ago