You have been given the choice to reduce your mortgage interest rate for each point received by the fender at closingyou decided to give 2.25 points, on a 550000 loan, how much money will you be needing to bring to close to cover your points?

You have been given the choice to reduce your mortgage interest rate for each point received by the fender at closingyou decided to give 2.25 points, on a 550000 loan, how much money will you be needing to bring to close to cover your points?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: You purchase a basic package, 4-door sedan for your company's fleet for $18,000. The 3 year loan has…

A: Assumption: It is assumed the given situation is in monthly compounding. The question gives the…

Q: please step by step solution.

A: PART A: PART B: PART C: PART D:

Q: You would like to purchase your dream home, which costs $1.5M, with a 20% down payment and a 30-year…

A: The Payback Period: The payback period measures the time it takes for an initial investment to be…

Q: The lender charges three points to get the mortgage. How much do the points cost you?

A: Solution Calculated the points cost Cost of one unit Home = $200000 Less:25% Down…

Q: You want to buy a $255,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: Amount of home = $255,000 Down payment = 5% The time duration of the loan = 30 years

Q: You are looking at a one-year loan of $13,500. The interest rate is quoted as 9.7 percent plus two…

A: Here,Loan Amount $ 13,500Interest Rate9.7%Lender Upfront Cost2%Time Period in years1Lender Upfront…

Q: You are to receive $ 400,000 exactly 5 years from now. You do not want to wait for the money and…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: You would like to purchase a home and are interested to find out how much you can borrow. Your…

A: Here,MaximumMonthly Payment (PMT) is $1,519Interest Rate (r) is 4%Time Period (n) is 30…

Q: 10. You're interested in a house listed at $213000. You plan to put down 10% as a down payment. a)…

A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…

Q: You are purchasing a home for $300,000 and have a 20% down payment. You are deciding between a…

A: Here, To Find: Part A. Amount paid for points on the closing of the loan =? Part B. Decision from…

Q: suppose that you decide to borrow $15,000 for a new car. you can select one of the following loans,…

A: a.Loan ALoan Amount (pv) = $15,000Interest Rate (rate) = 5.9%Time Period = 3 YearsNumber of Payments…

Q: Assume you are making 10% of downpayment of a loan of 48,965.30 what is my montly payment over the…

A: Calculate the downpayment amount:Downpayment = 10% of $48,965.30 = $4,896.53 Find the loan amount…

Q: Lenders often require home buyers to pay "points." A point is 1% of the purchase price of the home.…

A: Amount of mortgage loan "P" is $155,000 Time period is 15 years Option A Annual interest rate is…

Q: John wants to "roll in" or finance the loan fee of $5, 200 into the loan amount which would make the…

A: Loan amount=$106200Loan fee=$5200Interest rate=5%Period=30 yearsIn this, first three parts will be…

Q: You need to borrow $10,000 right now but can repay the loan in 6 months. Since you want to pay as…

A: Simple Interest Loans are the loans in which the interest amount is calculated by multiplying the…

Q: Select the correct choice below and fill in the answer box within your choice.

A: Loan Amount: It represents the credit given to the borrower by the lender. The borrower makes…

Q: P | כ Use [ to determine the regular payment amount, rounded to the nearest dollar. Consider the…

A: Total cost of mortgage is the total amount which is paid for availing the mortgage amount. It…

Q: Solve please will all steps without excel. A loan of 45,000 SR is to be financed to assist in…

A: Nominal interest rate refers to the interest rate that is compounded for a given period of time.

Q: Use PMT= PA [-] financed with a 30-year fixed-rate mortgage at 8%. Complete parts (a) through (e)…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: [+] to determine the regular payment amount, rounded to the nearest dollar. Conside lowing pair of…

A: A loan to a borrower given by the bank/ financial institution which helpful to the borrower in…

Q: If you need a loan for $16000 and make a down payment of 5%, then finance the balance with a 3-year…

A: A loan indicates the sum borrowed to meet the specific personal or business needs. The loan is…

Q: 34. You get a 7.125% mortgage loan with front-end loan charges of $3,800. Will your APR be (a) less…

A: ANNUAL APR =RATE / INITIAL LOAN AMOUNT INITIAL LOAN AMOUNT = LOAN - FRONT END CHARGES…

Q: You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus two…

A: As it is already explained in the question, 1 point is equal to 1% of the loan amount. A point is a…

Q: You can afford a $1350 per month for a mortgage payment on a house in Phoenix. You've found a 30…

A: As per the time value of money, a dollar is worth more today than the same dollar in the future.…

Q: 3. The lender charge P348.00 for a loan of P3,500.00 for 2 2 year. Determine the rate of interest.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Use the PMT function or your buy/rent calculator. You bought a house for $650,000 and had an LTV of…

A: Assuming payments are made on monthly basis Actual Price of the house = $650,000 LTV = 75% Time = t…

Q: rest rate is 1.2% per month, what is the APR? 2) Which is better if you’re taking a car

A: APR is annual percentage rate that is interest rate without compouding of interest and APR is much…

Q: You take out a 5-year car loan with monthly payments of $425. The interest rate for the loan is…

A: To calculate the total interest paid over the life of a loan, we need to determine the total amount…

Q: Person A has a take home pay of 3980 and wishes to spend only 1/4 of this pay on a monthly house…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus two…

A: Loans refer to contracts between two parties where one borrows a sum from the other on the promise…

Q: You are taking out a new loan of $140,000 that includes an origination fee of 4.5%. How much money…

A: Given, New loan = $140,000 Origination fees = 4.5%

Q: What is the maximum APR you can accept if you can afford to make monthly payments of $120 on a…

A: The yearly rate that borrower pays on loan and investors receives on deposits is the annual…

Q: Use an online loan calculator to determine the regular payment amount, rounded to the nearest…

A: The long-term loan that was obtained from the lender is being repaid in monthly mortgage…

Q: What is the maximum amount Ginger Logan can bonow todaymust be repaid in 17 mordhs with sinple…

A: Simple interest number in the question is illegible. I assume to have taken the correct number…

Q: EASE DO NOT ROUND THE ANSWERS Selling Price of Home Down Payment Rate of Interest Years $…

A: Mortgage loans are common in buying homes because mortgage loans are paid by the monthly payments…

Q: Discount loan. Up-Front Bank uses discount loans for all its customers who want one-year loans.…

A: Interest on discount rate = 8.5% Repayment Amount = $225,000 The initial amount will be equal to…

Q: The buyers paid $6,125 for a 1 point origination fee and a 1.5 discount point fee, what is the…

A: Origination fee is the amount paid on processing and approving of loan while discount point fee is…

Q: (Q) You would like to purchase a home and are interested to find out how much you can borrow. When…

A: Present Value of Ordinary Annuity depicts the concept which dictates the present or today's value of…

Q: You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year…

A: The amount that you can borrow today based on your ability to pay will be the present value of all…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

You need a loan of $110,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. = Choice 1: 15-year fixed rate at 4% with closing costs of$1600 and no points. Choice 2: 15-year fixed rate at 3.5% with closing costs of$1600 and 3 points. What is the monthly payment for choice 1? $_______ (Do not round until the final answer. Then round to the nearest cent as needed.) What is the monthly payment for choice 2? $_____ (Do not round until the final answer. Then round to the nearest cent as needed.) What is the total closing cost for choice 1? $_____ What is the total closing cost for choice 2? $_____ Why might choice 1 be the better choice? A.The monthly payment is lower. B. The closing costs are lower. C. The monthly payment is higher. D. The closing costs are higher. Why might choice 2 be the better choice? A. The closing costs are lower. B. The monthly payment is lower C. The monthly payment is higher. D. The closing…
You get a 7.125% mortgage loan with front-end loan charges of $3,800. Will your APR be: (a) less than 7.125% (b) exactly 7.125% (c) greater than 7.125%
H2. A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points. How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is invested monthly? (please do not solve in the excel)
← You need a loan of $150,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. Briefly discuss how you would decide between the two choices. Choice 1: 20-year fixed rate at 6% with closing costs of $2900 and no points. Choice 2: 20-year fixed rate at 5.5% with closing costs of $2900 and 4 points. What is the monthly payment for choice 1? A (Do not round until the final answer. Then round to the nearest cent as needed.)
5) A lender is willing to provide financing at a DSCR of 1.25 at 5.0% interest with 25-year monthly amortization on a $225,000 NOI. What are my monthly payments? 6) If the lender in question 5 charges 2 points, what is my cost of financing? 7) Based on question 6, What is my cost of financing if I pay the loan off at the endof year 5? 8) What is the loan balance at the end of year 5?
If a car is sold for P1,230,000 and the bank requires 15% downpayment, what is the amount of the mortgage?
An online lending company is offering simple interest personal loans based on consumer creditscores. With your credit score, you can borrow $5000 for 3 years at an interest rate of 17.73%. Howmuch money will you pay the lending company at the end of 3 years?
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%
If you borrow $1,000 at 8.5% simple interest and the loan requires a lump sum payment of $1,213.16, what is the term of the loan? (Round your answer to the nearest whole number.)t = days
You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here Question Help: D Video Message instructor %24
Consider a borrower who took a loan worth 10000 at the beginning of period 1. The loan is to be repaid over 20 periods. Furthermore, assume that the interest rate is equal to 5%. How much does the borrower owe in debt at the beginning of period 3? Don't use Excel