A 30-year fully amortizing mortgage loan was made 10 years ago for $89,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $12,800. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?
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- A 30-year fully amortizing mortgage loan was made 10 years ago for $82,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $11,400. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?You want to take a $172260 mortgage at j2 = 11.59 % and can afford topay up to $5030 per quartely. What repayment period in the whole years should you request ? What will be your payment year to repay mortgage in calculatednumber of years ?Suppose you are interested in taking an FHA mortgage loan for $250,000 in order to purchase your principal residence. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully-amortizing mortgage loan is 5% and the term is 30 years and the UFMIP is financed (i.e., it is included in the loan amount), what is the dollar portion of your monthly mortgage payment that is designated to cover the UFMIP? A. $2,500.00B. $1,119.41C. $159.67D. $13.42
- Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years; current loan balance: $400,000; current loan interest: 5.875%; remaining term on current mortgage: 15 years; new loan interest: 3.625%; new loan term: 15 years; cost of refinancing: $6,000. Assume that the opportunity cost is 10%. Should the borrower refinanceA mortgage has the following terms: Amount: $750,000 Rate: 6.25% Amortization (Years): 30 Term (Years): 20 Please determine the following: What is the Monthly Payment? In preparing an Income Statement, what is the Interest Expense for years 1 – 5? What is the Principal Balance at the end of year 6? What is the value of the loan at the expiration? If rates remain constant (flat), what would the benefit be to refinance this loan after year 10? do all the questions 1-5 and show the formulas in excel and show how you got itYou want to get a commercial real estate mortgage of $6055209. You are offered a monthly payment loan with 5.75% interest and a 25 year amortization schedule with a balloon payment at the end of 7 years. What will be your monthly mortgage payment? State your answer as a number rounded to two decimal points (e.g. if the answer is $2345.123, write 2345.12)
- Need Detailed answer with steps please 30. Considering the following information, what is the NPV if the borrower refinances the loan? Expected holding period: 3 years, Current loan balance: $100,000; Current loan interest: 7%; Current loan mortgage payment: $898.33; Remaining term on current mortgage: 15 years; New loan interest: 5.5%; New loan mortgage payment: $817.08; New loan term: 15 years; Cost of refinancing: $5,000. Assume that the opportunity cost is the interest rate on the new loan (5.5%). A. -$5,000.00 B. -$1,155.27 C. $3,844.73 D. $8,844.73assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. a. What is the monthly payment Assuming that it is based on an amortization period of 30 years? b. What will be the required balloon payment at the end of the tenth year? c. What is the effective borrowing cost on the loan if it is held to maturity? Give typing answer with explanation and conclusionYou purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule. What are the periodic annual payment required for the mortgage? What are the interest payment for the first year? What is the first year principal repayment What is the balance owed at the end of the first year? What are the interest paid on the principal repayment for the second year ? What is the balance owed at the end of the second year ? Why did the interest paid on the principal repayment change in the second year?
- ABC mortgage is to obtain a facility amounting to $200000 to be repaid over a period of 20 years at an annual rate of 10%.Help the company to; 1. Compute monthly mortgage payment for this loan 2. Amortize the mortgage loan for the first one year 3. Suppose the mortgage is paid off after one year, how much will be paid to clear the mortagepp. Subject :- Accounting A 30-year fully amortizing mortgage loan was made 10 years ago for $89,000 at 6 percent interest. The borrower would like to prepay the mortgage balance by $12,800. Required: a. Assuming he can reduce his monthly mortgage payments, what is the new mortgage payment? b. Assuming the loan maturity is shortened and using the original monthly payments, what is the new loan maturity?If you want a 20-year, fixed mortgage loan of $500,000, with an annual interest rate of 3.25% APR and no down payment. 1) Determine the monthly mortgage payment, determine the total amount paid over the full term of the loan, and how much interest will be paid on the loan over the 20 years. 2) Of the first month's mortgage payment, how much goes towards the interest and how much is applied to the principal? 3) What is the new balance on the 20-year loan after the first mortgage payment?