Which of the following type of mortgage would be the most advantageous to have on your house if you expect the annual ra...
Which of the following type of mortgage would be the most advantageous to have on your house if you expect the annual rate of inflation will be higher than most people think?
____
A) Second mortgage
B) Reverse mortgage
C) Fixed-rate mortgage
D) Variable-rate mortgage
Homework Answers
Ans C) Fixed-rate mortgage
Fixed-rate mortgage would be the most advantageous to have on your house if you expect the annual rate of inflation will be higher than most people think
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Which of the following type of mortgage would be the most advantageous to have on your house if you expect the annual ra...
You borrow $500,000 to purchase a house. The mortgage is a 30-year fixed rate mortgage, with...
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 are buying a house that costs $440000 and plan on taking out a 30-year fixed...
You are buying a house that costs $440000 and plan on taking out a 30-year fixed rate mortgage at an annual interest rate of 2.4%. 1)You make a 15% down payment of 66000, and take out a loan for the remaining $374000. How much would your mortgage payments be? (Ignore taxes, fees, and other charges, and round to the nearest penny.) . 2)You make this mortgage payment at the end of the first month. Your mortgage payment at the end of...
When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate...
When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 5 % per year. The annual payment on the mortgage is $ 17 comma 573. You have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance. a. What is the payoff amount if you have lived in the house for 18 years (so there are 12 years left on the mortgage)? b. What is...
Your have just sold your house for $1,050,000 in cash. Your mortgage was originally a 30-year...
Your have just sold your house for $1,050,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.5 years old, and you have just made a payment. If the interest rate on the mortgage is 7.75% (APR with semi-annual compounding), how much cash will you have from the sale once you pay off the mortgage? a) The discount rate for the mortgage is___? b) Mortgage payments...
Suppose you want a $100000 mortgage to buy a house. If your mortgage annual rate is...
Suppose you want a $100000 mortgage to buy a house. If your mortgage annual rate is 3.548% and you're financing your payments for 30 years. Then how much will your monthly payment be?
You have just purchased a house and have obtained a 15-year, $200,000 mortgage with an interest...
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...
11. Suppose that you take out a $250,000 house mortgage from your local savings bank. The...
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. What would be your monthly mortgage payment if you pay for a $250,000
4. A. What would be your monthly mortgage payment if you pay for a $250,000 home by making a 20% down payment and then take out a 3.74% thirty year fixed rate mortgage loan where interest is compounded monthly to cover the remaining balance. All work must be shown justifying the following answers. Mortgage payment = B. How much total interest would you have to pay over the entire life of the loan. Total interest paid = C. Suppose you inherit some money and...
Suppose you have a $1 million, 5% fixed rate mortgage with annual payments, a maturity of 30 year...
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You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year...
You have just sold your house for $1,100,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18½ years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Suppose you want a $100000 mortgage to buy a house. If your mortgage annual rate is 3.548% and you're financing your payments for 30 years. Then how much will your monthly payment be?
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...
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