Consider the following fixed-rate level-payment mortgage pass-through security: Total principal outstanding = $5,000,000 Weighted average mortgage (Note) rate = 8.25% Weighted average remaining maturity = 30 years (360 months) Pass-through rate=7.5% What is the scheduled monthly mortgage payment if there is no prepayment?

Consider the following fixed-rate level-payment mortgage pass-through security: Total principal outstanding = $5,000,000 Weighted average mortgage (Note) rate = 8.25% Weighted average remaining maturity = 30 years (360 months) Pass-through rate=7.5% What is the scheduled monthly mortgage payment if there is no prepayment?

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...

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Consider the following fixed-rate level-payment mortgage pass-through security: Total principal outstanding = $5,000,000 Weighted average mortgage (Note) rate = 8.25% Weighted average remaining maturity = 30 years (360 months) Pass-through rate=7.5% What is the amount of prepayment in the sixth month?
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1. You have just obtained a commercial mortgage for $6.25M with a 5-year term, 25-year amortization period and 6.50% mortgage interest rate. (a) Construct an amortization table for the term of the loan assuming annual payments. What is the annual payment? What is the balance at maturity? (b) What is the e¤ective cost of borrowing if the borrower pays an origination fee of $30,000? (c) The borrower can repay the balance of the loan at any time prior to its maturity, but must pay a penalty of 5% of the outstanding balance. What is the cost of borrowing if the borrower pays an origination fee of $30,000 and pays off the remaining balance of the loan after making payments for 4 years?
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