A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years. The interest rate is 8% annually. The Bank has the following policy: Charge $650 processing fees, and loan initiation charge 1.5 point, and stipulate a penalty equal to three times one month payment a. What is the monthly payment b. Build a 3 rows of amortization table c. What is the real cost of the Mortgage d. After 5 years BP announced that ha offered a mortgage at 7%. Should the couple switch to BP
A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years. The interest rate is 8% annually. The Bank has the following policy: Charge $650 processing fees, and loan initiation charge 1.5 point, and stipulate a penalty equal to three times one month payment a. What is the monthly payment b. Build a 3 rows of amortization table c. What is the real cost of the Mortgage d. After 5 years BP announced that ha offered a mortgage at 7%. Should the couple switch to BP
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
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A couple purchase a home and sign a mortgage contract for $150000 to be paid monthly over 25 years. The interest rate is 8% annually. The Bank has the following policy: Charge $650 processing fees, and loan initiation charge 1.5 point, and stipulate a penalty equal to three times one month payment
a. What is the monthly payment
b. Build a 3 rows of amortization table
c. What is the real cost of the Mortgage
d. After 5 years BP announced that ha offered a mortgage at 7%. Should the couple switch to BP
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