A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 3.2%compounded semi-annually. 50 months later, the 5-year mortgage interest rate hasdecreased to 2.5%. What would be the new blend-and-extend mortgage rate if thismortgage is refinanced for a new 5-year term?Select one:a. 6.80%b. 3.08%c. 6.18%d. 7.20%e. 2.61% The Taylors agreed to monthly payments rounded up to the nearest $100 on amortgage of $336,000.00 amortized over 15 years. Interest for the first five years was2.5% compounded semi-annually. Determine the mortgage balance at the end of thefive-year term. Hint: First, determine the required monthly mortgage payment andthen round that payment up to the nearest $100. Second, recalculate N.Select one:a. $265,785.36b. $233,657.28c. $102,384.77d. $107,755.64e. $220,384.77

Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 3.2% compounded semi-annually. 50 months later, the 5-year mortgage interest rate has decreased to 2.5%. What would be the new blend-and-extend mortgage rate if this mortgage is refinanced for a new 5-year term? Select one: a. 6.80% b. 3.08% c. 6.18% d. 7.20% e. 2.61%

A mortgage of $169,900 was taken out when the 5-year mortgage interest rate was 3.2% compounded semi-annually. 50 months later, the 5-year mortgage interest rate has decreased to 2.5%. What would be the new blend-and-extend mortgage rate if this mortgage is refinanced for a new 5-year term? Select one: a. 6.80% b. 3.08% c. 6.18% d. 7.20% e. 2.61%

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

Given the following information on two fixed-rate fully amortized mortgages and consider the refinancing decision of the old loan at the end of Year 10. Old Loan 4,000,000 30 years Yes 7% Origination Fee 3% Prepayment Penalty 7% Loan Amount Loan Term Fully Amortized Interest Rate 3.4 million What is the unpaid principal balance of the old loan at the end of Year 10? (choose the closest answer) 3.0 million 3.8 million New Loan 4.0 million 20 years Yes 5.5% 4% 3%
A price level adjusted mortgage (PLAM) is made with the following terms: Amount = $95,700 Initial interest rate = 4 percent Term = 30 years Points = 6 percent Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6 percent per year for the next five years: Required: a. Compute the payments at the beginning of each year (BOY). b. What is the loan balance at the end of the fifth year? c. What is the yield to the lender on such a mortgage? Please SHOW me how this is done. I cannot calculate payment when inputing these values to Excel. Thank you!
Assume a 30 year fixed rate, fully amortizing mortgage for $260,000 at a stated rate of 5% with monthly payments (no fees, points or escrows). What is the loan balance (or "payoff amount) - after 4 years? Ch4 a. b. C. 230,530 d. 190,949 194,843 243,438
Consider a 30-year, fixed-rate mortgage for $120,000 at a nominal rate of 6% with monthly payments. If the borrower pays an additional $120 with each monthly payment, what will be the amount of the last monthly payment? A. $839.46 B. $357.77 C. $843.66 D. $419.85 E. $355.99 F. $420.90 G. $418.81 H. $841.55
A floating rate mortgage loan is made for $185,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $1,480. Required: a. What will be the loan balance at the end of year 1? b. If the interest rate increases to 13 percent at the end of year 2, how much is the payment plus negative amortization in year 2 and year 5 if the payment remains at $1,480?
Give typing answer with explanation and conclusion
ch 3. A fully amortizing mortgage is made for $100,000 at 6.5% interest. If the monthly payments are $1000 per month, then when will the loan be repaid? 4. A partially amortizing mortgage loan is made for $60,000 for a term of 10 years. The borrower and lender agree that a balance of $20,000 will remain and be repaid as a lump sum at that a. If the interest rate is 7%, what must monthly payments be over the 10 year term? b. If the borrower chooses to repay the loan after five years instead of at the end of year 10, then what will the loan balance be at the end of year 5? 5. A fully amortizing CAM loan is made for $125,000 at 11 percent interest for 20 years. a. What will be the monthly payments and remaining loan balances for the first six months? b. c. What would monthly payments be if the loan were CPM instead? If both loans (the CAM and CPM) are repaid at the end of year 5, would the lender earn a higher rate of interest on either loan? Which one and why? Use Excel. 6. A $100,000…
setting the appropriate values for a $100,000, 30-year mortgage at 6% interest and using Excel's autofill (drag) feature to fill in the cells to the end of the mortgage period. Use this to answer the following: How much of the first payment goes towards the principal? Interest?
Of the bank approves a mortgage of 240,000 for 30 years and at a rate of 6% what will the the annnual mortgage payment
A homeowner took out a 30-year fixed-rate mortgage of $120,000. The mortgage was taken out 15 years ago at a rate of 7.95 percent. If the homeowner refinances, the charges will be $2,000. What is the highest interest rate at which it would be beneficial to refinance the mortgage? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) APR %
You are considering two payment options on a $500,000 20-year mortgage having an interest rate of 2.8% compounded monthly. The first option is to make monthly payments at the start of each month, while the second option is to make payments at the end of each month. How much interest will be saved by choosing the first option? O a. $1,521.60 O b. $1,721.60 O c. $1,921.60 O d. $2,121.60 O e. $2,321.60
pp. 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?

SEE MORE QUESTIONS

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