A mortgage lender has offered you a $325,000 15-year 3/1 Hybrid adjustable rate mortgage (ARM) loan with monthly payments that fully amortizes with $4,000 of origination fees. The initial rate of the offered loan is 3.6%, but future payments after the loan resets will be indexed the current 10-year T-bond rate plus a margin of 276 basis points. There are no interest-rate caps on the loan and the 10-year T-bond rate will be equal to 3.24% at the time the loan will be originated. What is the anticipated size in dollars of the 44th payment rounded to the nearest cent?

A mortgage lender has offered you a $325,000 15-year 3/1 Hybrid adjustable rate mortgage (ARM) loan with monthly payments that fully amortizes with $4,000 of origination fees. The initial rate of the offered loan is 3.6%, but future payments after the loan resets will be indexed the current 10-year T-bond rate plus a margin of 276 basis points. There are no interest-rate caps on the loan and the 10-year T-bond rate will be equal to 3.24% at the time the loan will be originated. What is the anticipated size in dollars of the 44th payment rounded to the nearest cent?

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 mortgage for $200,000 with interest rate of 7.20%, fixed monthly payments, and term of 30 years was originated 10 years ago. If the loan's current balance is refinanced for the rest of the original term of at the rate of 6.30% with monthly payments, what is the implied annual savings rate given that the existing loan has a refinancing fee of 4% of the remaining balance at the time of refinancing and that loan is expected to be outstanding for 9 years? Selected Answer: Below 6% O A. Correct Answer: Е. Between 12% and 14%
Consider a $5,000,000, 10% rate, 30-year mortgage with constant annual payments, fully amortizing. What is the yield to maturity (YTM) of this loan under the following circumstances: (a) No points (b) Three points of disbursement discount (paid by the borrower) (c) One point of disbursement discount (paid by the borrower)
A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment > 2 D TRENE VAR TVUNG S 2006- E - E
An interest-only mortgage is made for $94,000 at 6 percent interest for 10 years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization. Required: a. What will the monthly payments be? b. What will be the loan balance after five years? c. If the loan is repaid after five years, what will be the yield to the lender? d. Instead of being repaid after five years, what will be the yield if the loan is repaid after 10 years?
What is the effective yield to the lender through the date of prepayment on a $540,000 fixed rate mortgage loan fully amortizing over 30 years but paid off after 10 years if the stated annual interest rate is 6.50%, the lender charges 2.0% as an origination fee, $720 for an appraisal and $36 for a credit report and there is no prepayment penalty? -6.81% -6.71% -6.30% -6.50%
You take out a 15-year FRM for $500,000. The bank offers 5% interest rate but charges you a loan fee of 5% of the total loan amount. What is the actual cost of borrowing of this mortgage? 0.42% 0.48% 5.00% 5.79%
Ironwood Bank is offering a 30-year mortgage with an APR of 6.10% based on monthly compounding. If you plan to borrow $161,000, what will be your monthly payment? (Note. Be careful not to round any intermediate steps less than six decimal places.) The loan payment is § (Round to the nearest cent.)
A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment
None
A mortgage broker is offering a 30-year $192,900 mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.9 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.9 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment
please answer quickly for a good rating .
A Fixed Rate Mortgage (FRM) for $160,000 is made at a time when the market interest rate is 12%. The loan is partially amortizing, at the end of the maturity date there is a balloon payment of $25,000 to be able to pay off all the loan. The loan has a maturity of 30 years and payments will be made monthly. What will be the monthly payments? (Answer is rounded)

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