Chin Woo bought a home for $160,000. He put down 20%. The mortgage is at 8 1/2% for 25 years. Using the table in the handbook, his yearly payments are: Multiple Choice None of these $1,238.00 $12,380.16 $12,830.61 $12,380.61

Q: Delilah is paying $0.40 per $100 on her $210,000 home in homeowners' insurance annually. If her…

A: A mortgage is a type of loan that is taken for the purchase of a home or any other real estate…

Q: What is the difference in interest cost if he had obtained a mortgage rate of 5 1/2 %

A: First we need to determine the loan amount. This can be determined with the formula below:In the…

Q: On April 1, year 1, Mary borrowed $140,000 to refinance the original mortgage on her principal…

A: A home mortgage loan is nothing but the loan secured against a residential propertyIt can be…

Q: Mrs. Jasper has agreed to buy a home with a mortgage (loan) of $354,000. Her monthly payments are…

A: We know that Total amount of monthly Installment is sum of principle plus Interest. Total amount…

Q: Wally Bee purchased a new home for $500,000 with a $80,000 down payment. He financed the remainder…

A: Interest is generally calculated on unpaid loan  amount. In this question person W paid a sum of…

Q: Craig Hammer purchased a new condominium for $225,000. The bank required a $30,000 down payment.…

A: Total Present Value = $225,000 Down payment = $30,000 Present Value of Loan = $195,000 Annual…

Q: Loretta Scholten bought a home for $210,000 with a down payment of $30,000. Her rate of interest is…

A: Given: Total amount = $210000 Down payment = $30000 Rate of interest = 6%

Q: Larry and his wife Cuke have a mortgage of $200,000 at a rate of 3.25 % (annual) for 30 years. How…

A: Amortization of loan refers to the regular and equal repayments of the loan along with the interest…

Q: Jasmin has a mortgage of $296,000 through her bank for property purchased. The loan is repaid by end…

A: Mortgage Amount = $296,000Interest rate = 6.36%Period = 16 Years

Q: what is Ben's total monthly payment?

A: Insurance is the security taken by a person against life or asset. Against the insurance or security…

Q: Question 7 of 16 Erin purchased a house for $375,000. He made a downpayment of 20% of the value of…

A: Purchased a house - $375,000 Downpayment - 20% of the value of the house Mortgage for the rest of…

Q: Lizzy Clar bought a home for $160,000, putting down $30,000. The rate of interest is 7% for 25…

A: Total Present Value = $160,000 Down payment = $30,000 Present Value of Loan = $130,000 Annual…

Q: Alec bought a home for $179,000. He had a $50,000 down payment and got a 30-year fixed rate mortgage…

A: Mortgage is a value which is borrowed from the external sources like banks for the particular period…

Q: Shane purchased a house for $400,000. She made a down payment of 15.00% of the value of the house…

A: Let us understand compounding frequency with the help of examples.Suppose there are two loans. One…

Q: Mr. Nezir refinances his existing mortgage (30 years, $ 275,000, 4.00% interest) at 2.00% interest…

A: Amortization refers to the systematic and regular repayment of loan amount spread over the tenure of…

Q: Jill Diamond bought a home for $190,000 with a down payment of $65,000. The rate of interest was 7%…

A: Homes and other real properties are purchased by the business entities with the help of taking the…

Q: Jen Logan bought a home in Iowa for $110,000. She put down 20% and obtained a mortgage for 30 years…

A: Here, Particulars Values Price of a house   $ 110,000.00 Down payment (20%*$110,000)  $…

Q: Assume Jenny took out a $400,000 mortgage to pay for her new house. The mortgage rate is 5.7%. It is…

A: Information Provided: Mortgage amount = $400,000 Interest rate = 5.70% Period = 25 years

Q: Ephrem bought a home in Des Moines, lowa, for $335,000. He put down 15% and obtained a mortgage for…

A: The time value of money is related to the change in the worth of the money with time. It says that…

Q: everly Frost bought a home for $190,000 with a down payment of $19,000 at 7% for 25 years. Since…

A: Monthly payment = [P x R x (1+R)N]/[(1+R)N-1],   Here,  P = loan amount or principal = 190000 -…

Q: A couple buys a $190,000 home, making down payment of 16%. The couple finances the purchase with a…

A: Price of the home = $190,000 Down payment = 16% Loan amount (PV) = 190,000*(1-0.16) = $159,600…

Q: Five years ago, the Kellmans purchased a house and took out a mortgage of $600,000 from the BMO…

A: rate positively . EAR =   (1+2.79%/2)^2-12.81%      APR (monthly compounding)…

Q: Ben Brown bought a home for $225,000. He put down 20%. The mortgage is at 6 ½% for 30 years. Using…

A: Total Present Value = $225,000 Down payment = 20% EMI = P x r x [(1+r)n / (1+r)n - 1]

Q: BMO bank. They amortized the mortgage over 25 years at 2.79% compounc year term. The bank calculated…

A: Mortgage loans are paid by monthly payment that carry payment for interest and payment of loan also.

Q: Jason bought a home in Arlington, Texas, for $127,000. He put down 25% and obtained a mortgage for…

A: Price of home = $ 127000 Down payment = 25% Loan amount (PV) = 127000*(1-0.25)…

Q: A young couple buying their first home borrow $90,000 for thirtty years at 7.6%, compounded monthly,…

A: Hi, since you have asked a question with multiple sub-parts, we will answer the first three, as per…

Q: Sally purchased a home in Georgia for $167,500. She took out a mortgage for 80% of the purchase…

A: Prepaid Interest Expenses is that Expenses which is paid in advance before the Expenses due it will…

Q: Kia deposited $1,300, at the BEGINNING of each year for 26 years in a credit union account. If the…

A: Annuity = a = $1300 Time = t = 26 years Interest rate = r = 8%

Q: bought a vacation property for $18 900.00 down and sem nnual period for eight years. Interest is…

A: Price of property can be found from down payment and mortgage amount taken.

Q: Noel purchases a house and gets a 30-year mortgage for $195,000 at 5.5 % APR. In addition to the…

A: The escrow account is normally required by the mortgage lender and it is requested by the borrower.…

Q: Amy financed the purchase of her living room suite over two years.  Her monthly payments are $231.02…

A: Part (1) Purchase Price of  Furniture Annual Rate = 19.6% p.a. compounded semiannually Semi…

Q: Leona purchased a home and obtained a 25 year loan of 437,750$ at an annual interest rate of 6.5%.…

A: given, n = 25years r= 6.5% m = 12 p = 437,750

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.