Please correct answer and don't used hand raiting Consider a sequential pay CMO that is backed by 100 mortgages with averagebalance of $150,000 each. The mortgages have monthly payments with WAM = 30years and WAC = 6%. There is a servicing fee of 0.4% and prepayment is accordingto 150% PSA. Tranche A holds $6,000,000 of the mortgage pool principal atorigination, tranche B holds $3,000,000 and tranche Z holds $5,000,000. The rest ofthe pool principal is held by the SPV as a residual. The SPV has set a pass-throughrate (coupon rate net of the servicer/guarantee fee) of 4% for Tranche A, 4.5% forTranche B and 5% for Tranche Z. What is tranche A's outstanding principal balance atthe end of the first month (beginning of the second month)?Your Answer:AnswerQuestion 7Same setup as the previous question. What is the cash flow to the residual tranche inmonth 1?Your Answer:hAnswer

Step 1: Input DetailsStep 2: Calculate Monthly Mortgage Payment (M)Using the mortgage payment…

Answered: Consider a sequential pay CMO that is…

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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Consider a sequential pay CMO that is backed by 60 mortgages with average balance of $100,000 each. The mortgages have monthly payments with WAM = 15 years and WAC = 4%. There is a servicing fee of 0.6% and prepayment is according to 100% PSA. There are two tranches in this CMO: tranch A issued for $3,000,000 and tranche B issued for $3,000,000. How much cash flow do investors in tranche A receive in the first month?
Use PMT = to determine the regular payment amount, rounded to the nearest dollar. The price of a home is $181,000. The bank requires a 20% down payment and three points at the time of closing. The cost of 1- the horme is financed with a 30-year fixed-rate mortgage at 7.5%. Complete parts (a) through (e) below. a. Find the required down payment. b. Find the amount of the mortgage. c. How much must be paid for the three points at closing? $ (Round to the nearest dollar as needed.) d. Find the monthly payment (excluding escrowed taxes and insurance). $ (Round to the nearest dollar as needed.) e. Find the total cost of interest over 30 years. $ (Round to the nearest dollar as needed.) Next MacBook Air 8884 %23 24 % & * 2 3 4 5 6 8. 9. R. T Y D K F. S'
Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $120,000 20-year - nt 1- fixed-rate mortgage at 4%. a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. ..... a. The monthly payment is $ 727.18 . (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for the loan is $ . (Use the answer from part a to find this answer. Round to the nearest cent as needed.)
Your current mortgage payment is $1,558.50 per month, with a balance of $217,800. Suppose you have a chance to refinance at a certain bank with a 30-year, 5.75% mortgage. The closing costs of the loan are application fee, $90; credit report, $165; title insurance, 0.4% of the amount financed; title search, $360; and attorney's fees, $570. a) Calculate the total refinance closing cost (in $). (Round your answer to the nearest cent.)
Please eolve this question on excell and show formulas please.
6
Use P ÞA to determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger total cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point. Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points. Choose the correct answer below, and fill in the answer box to complete your choice. (Do not round until the final answer. Then round to the nearest dollar as needed.) OA. Mortgage A has a larger total cost than mortgage B by $ O B. Mortgage B has a larger total cost than mortgage A by $
A pass-through is issued with the following characteristics: • Mortgage pool: $5 million • All mortgages are FRM at 10% per year, 3-year maturity, yearly payment Pass-through: $5 million, yearly payment •Fee payment: 1.5% of outstanding loan balance • Assume prepayment rate: 3% of the mortgage pool for the 1st year, 5% for the 2nd year From the information above, we have the following table: Year 1 Beginning Mortgage Interest balance payment payment $5,000,000 $2,010,574 500,000 $1,510,574 150,000 Principal payment Pre- payment Fee payment $75,000 $1,935,574 $3,339, Payment to Ending investors balance 2 $3,339,426 1,924,146 $333,943 $1,590,203 $166,971 50,091 $1,874,054 1,582,2 3 1,582,252 $1,740,477 $158,225 1,582,252 $0 $23,734 $1,716,743 What is the value of this pass-through at 8% discount rate? $5,168,900 $4,339,025 $5,000,000 $4,761,703
Using the residential mortgage-debt to income ratio of 28%, and total-debt to income ratio of 36%, what is the largest loan (with a 30-year FRM at 6%) you can qualify for if you make $38,000 a year and have outstanding debt with $250/month payments? O $113,418 O $140,107 O $150,112 $155,616 O $148,445
Using this table as needed, calculate the required information for the mortgage. (Round dollars to the nearest cent.) Amount Financed = 220,000 Interest Rate = 7.25% Term of Loan (years) =15 SOLVE FOR THE FOLLOWING: Number of $1,000s Financed Table Factor (in $) Monthly Payment (in $) Total Interest (in $)
Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home is financed with a $150,000 20-year fixed-rate mortgage at 3.5%. -nt +1 a. Find the monthly payments and the total interest for the loan. b. Prepare a loan amortization schedule for the first three months of the mortgage. a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.) The total interest for the loan is $. (Use the answer from part a to find this answer. Round to the nearest cent as needed.) b. Fill out the loan amortization schedule for the first three months of the mortgage below. Payment Number Interest Principal Loan Balance 1 $ 2. $ $ 3 $ $ (Use the answer from part a to find these answers. Round to the nearest cent as needed.)
Debt Service Coverage Ratio (DSCR or DCR): Assume that a property has a monthly net operating income (NOI) of $25,000, and that a lender has a minimum DSCR requirement of 1.35. What is the maximum loan that you could obtain assuming a 4.5% interest rate and a 30-year term with monthly payments?

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