4. You are considering buying a new house. The house you want will cost you $150,000. You have $50,000 in cash to spend but will need to finance the rest. The bank has offered you a 30 year mortgage at 4%. What will be your monthly payment across those 30 years (Remember to convert to monthly rather than annual payments).

4. You are considering buying a new house. The house you want will cost you $150,000. You have $50,000 in cash to spend but will need to finance the rest. The bank has offered you a 30 year mortgage at 4%. What will be your monthly payment across those 30 years (Remember to convert to monthly rather than annual payments).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
You found your dream house. It will cost you $300000 and you will put down $40000 as a down payment. For the rest you get a 30-year 5.0% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)?.
9) You buy a house for $200,000. The mortgage company offers a 30 year loan with an annual interest rate of 8% (but the loan requires monthly payments and the interest will compound monthly). What will be your monthly house payment?
3. You are purchasing an annuity that will pay you 15,000 a year for 5 years, beginning in year 20. The rate of return on the annuity is 3.5%. What are you going to pay for the annuity today? colqmsx3 le охолова 4. You are purchasing a car from your grandparents. You agree to pay them $2000 today and $2000 per year for the next 3 years. If you assume an interest rate of 2%, what is the value of the car? noillum S.So und
You need a loan of 250000 to buy your first home. The bank offers a 30 year fixed-rate mortgage with an APR of 4.16% or a 15 year fixed-rate mortgage with an APR of 3.22%.What will your monthly payments be for the 30-year mortgage? How much will the total interest be for the 30-year mortgage? What will your monthly payments be for the 15-year mortgage? How much will the total interest be for the 15-year mortgage?
If you are a mortgage lender, what is the most you are willing to lend a borrower today in the following situation: The borrower has promised to pay you $10,500 at the end of each year for 30 years and you want to earn a 5% annual rate of return. Amount the lender is willing to lend:
You have two goals for which you want to save both relating to a home purchase. You have decided to start a savings plan. First, you want to purchase your new $500,000 home in eight years. Your first goal is to have $100.000 saved for a down payment and you will finance the rest with a 30-year, 6% APR conventional simple amortized mortgage. Secondly, you also want to pay off the home 15 years after purchase, but you do not want to be committed to a higher 15-year mortgage payment. So, separate from making your monthly payment, your second goal is you want to save enough money to make a final, lump-sum payment, sent as payment nunber 181, to pay off the balance remaining at that time. You want to invest on a monthly basis beginning one month from now and ending when you pay off the mortgage, as one continuous annuity. Assume you can earn 8% EAR on your investment. Calculate the monthly savings contribution required to meet your two goals.
3. You are purchasing a new home and need to borrow $325,000 from a mortgage lender. The mortgage lender quotes you a rate of 6.5% APR for a 30-year fixed rate mortgage (with payments made at the end of each month). The mortgage lender also tells you that if you are willing to pay one point, they can offer you a lower rate of 6.25% APR for a 30-year fixed rate mortgage. One point is equal to 1% of the loan value. So if you take the lower rate and pay the points, you will need to borrow an additional $3,250 to cover points you are paying the lender. Assuming that you do not intend to prepay your mortgage (pay off your mortgage early), are you better off paying the one point and borrowing at 6.25% APR or just taking out the loan at 6.5% without any points?
You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend you the money at a 6 percent APR for a 360 month loan. You can only afford a monthly payment of $1000. How much downpayment should you put at the time of purchase? Please show your work using excel formulas.
You found your dream house. It will cost you $300000 and you will put down $30000 as a down payment. For the rest you get a 30-year 6.0% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)? Your Answer:
You are in the market to buy a home. You plan on borrowing $312,627 from the bank. Interest rates are currently 3% for a 30 year mortgage (hypothetically, not actually). How much money will you pay in interest over the lifetime of the loan? Round to the nearest whole number.

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS