Five years ago you took out a 30-year mortgage with an APR of 6.20% for $206,000. If you were to refinance the mortgage today for 20 years atlan APR of 3.95%, how much would your new loan payment?
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- Calculating single-payment loan amount due at maturity. Stanley Price plans to borrow 8,000 for five years. The loan will be repaid with a single payment after five years, and the interest on the loan will be computed using the simple interest method at an annual rate of 6 percent. How much will Stanley have to pay in five years? How much will he have to pay at maturity if hes required to make annual interest payments at the end of each year?The amount that is borrowed on your house mortgage was $175,000 dollars to be repayed through monthly payments for 25 years at 5.6% APR. a. Find the amount of the monthly payment that would amortize this loan. b. Suppose you have been making your payments for the last 7 years and would like to apply for a home equity loan to put an in ground pool in your yard. Calculate what remains to be paid on your mortgage. c. Calculate the equity you have in your home if your home is currently worth $205,000.The original amount that was borrowed for your home mortgage was 175,000 dollars, to be repaid through monthly payments for 25 years at 5.6% APR . a. Find the amount of the monthly payment that would amortize this loan. b. Suppose you have been making your payments for the last 7 years, and would like to apply for a home equity loan to put an in-ground pool in your yard. Calculate what remains to be paid on your mortgage. c. Calculate the equity you have In your home if your home is currently worth $205,000.
- ← You have just negotiated a home mortgage with a principal of $350,000. The bank's quoted rate is 6.3%. You chose a 20-year amortization and you decide to make 12 payments per year. Each mortgage payment is $2,551.90. How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year. The interest as a percentage of the total payments in year 1 is %. (Round to four decimal places as needed.)You buy a house and finance the purchase with a $200,000 mortgage. What are your monthly payments if the mortgage is for 30 years and the nominal annual mortgage interest rate is 6.50%? O $1,137.72 $1,011.31 O $1,264.14 $555.56 $1,200.93A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years. 1. What is the monthly payment? 2. What is the current loan balance? 3. Assume this is homeowner has been offered a chance for refinance for the amount at the current balance for 22 years at 10.5% interest rate. What is the monthly payment if the homeowner chooses to refinance? 4. If the origination fees and closing costs are $25,500, and the costs are not financed by the lender. What is the effective cost of refinancing? Should this homeowner refinance? 5. If this homeowner plans to sell the house in 5 years, should this homeowner refinance (show your answer with the effective annual rate)? use excel to get the answers and show the formulas
- What is the value accumulated at the end of 30 years if $300 deposited at the end of each month in a mutual fund account that earns 12 percent annually during the period. Ans. A mortgage calls for monthly payments of $970.30, including interest at 7.6 percent. The current value of the mortgage is $95,258.72. Approximately how long will it take to fully amortize the mortgage? Ans. An income-producing property is priced at $550,000 and is expected to generate the following after-tax cash flows: Year 1: $50,000; Year 2: $55,000; Year 3: $60,000 and $600,000. Calculate the annual IRR for this investment opportunity. Ans.Suppose you purchased a house 7 years ago and took out a mortgage for $400,000 with a 5.6% interest rate. The mortgage is a 30 year mortgage with monthly payments. Today you can refinance the loan at a 5% interest rate for a fee of $10,000. Assume that you would borrow just enough to repay the old loan and the refinancing fee. Monthly Annual Rate Life (In Years) Loan Amount Periods Paid Fee Payments 30 $ 400,000.00 Initial Loan Refinancing 5.6% 84 $ 0 $10,000.00 5.0% 30 If you refinance at the new rate, how much will you save per month? Monthly Savings If you expect to move in 6 years, would you want to refinance? Years Months Time Till Move 72 Old Loan New Loan Loan Balance at Move NPV of Refinancing Refinance?Suppose that you purchased a house with a $140,000 mortgage (30-year fixed at 6% with a payment of $839.37) five years ago. The loan balance is currently $130,276 and you can refinance that balance at 5% with a new 30-year fixed rate mortgage. You anticipate being in the house for another six years, at which point the balance on your current mortgage would be $114,032. If you refinanced at the terms above, what would be the difference in the loan balances? O $1,329 O $1,871 O $2,471 O $3,132 O $3,860 2
- You just closed on a $384,757 home in Cincinnati, Ohio. Now you have a 30-year mortgage with an APR of 11.75 percent per year with monthly compounding. How much interest will you pay over the life of the mortgage? $1,013,401.86 $384,757.00 $1,398,158.86 O $15,890,464.10 O $61,141.15An investor purchased a house 10 years ago by taking out a 30-year mortgage loan for $300,000. The mortgage has a fixed interest rate of 5 percent compounded monthly. If the investor wants to pay off his mortgage today, what is the remaining balance of the loan? $150,048 $280,325 O $244,026 $289,058 ○ $189,656You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2146, and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly 4 years and 8 months old. You have just made your monthly payment. The mortgage interest rate is 6.221% (APR with semi-annual compounding). How much do you owe on the mortgage today? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly discount rate is 0.51182 %. (Round to five decimal places.) The amount you owe today is $ (Round to the nearest dollar.)