I need a detailed explanation on how to solve this problem: You want to buy a house for $245,000, on a 35-year, fixed rate mortgage. The bank offers you a 420 month, 5.4% APR mortgage. You can only afford to pay $850 per month. But you offer to pay off the remaining balance at the end of the loan in a single balloon payment. - How much will the balloon payment be for you to keep the monthly payment at $850?

Q: Suppose you are buying your first condo for $250,000, and you will make a $7,500 down payment. You…

A: Monthly Payment  = P * r * [(1+ r)n/({1 + r}n -1)] Where, P = Principal borrowed =Asset value -…

Q: You take out a 28-year mortgage loan for $757000. The annual interest rate of the loan that you pay…

A: Mortgage loan is a type of loan where a person puts his asset on Collateral to the lender to get a…

Q: .You a buying a home for $425,000 and would like to determine the monthly mortgage payment. You can…

A: The excel formula to calculate the monthly payment is - Monthly payment = PMT (Interest…

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A: Mortgage/ Borrowings Borrowings are the loan which is taken by the individual to meet its financial…

Q: You plan to purchase a house for $166,000 using a 15-year mortgage obtained from your local bank.…

A: Discount points refer to the optional fees (extra charges) over the agreed stated interest rate on a…

Q: ou can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30…

A: When we make a mortgage payment we pay fixed monthly amounts as payments towards the mortgage.…

Q: The price of a home is $600,000. The bank requires a 20% down payment. The cost of the home is…

A: compound = monthly = 12 Price of home = $600,000 Down payment = 20% Time = t = 30 * 12 = 360…

Q: You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the…

A: A mortgage is a type of loan used to purchase a property or real estate. The borrower (homebuyer)…

Q: You can afford a $1300 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: Monthly payment (P) = $1300 Period = 30 Years Number of monthly paymenst (n) = 30*12 = 360 Interest…

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: Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and…

A: The current price of the house is computed by computing the present worth of the house. The formula…

Q: A lender gives you a $125,000 thirty-year fixed-rate mortgage at 6.60%, two discount points, monthly…

A: Mortgage refers to the process under which one person borrows money from the lender and owes…

Q: You can afford a $850 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: You are borrowing $250,000 to buy a house, using a standard, 30-year mortgage. Your mortgage lender…

A: A mortgage is a covered loan taken out to purchase a property with the property itself acting as…

Q: Big Dom's Pawn Shop charges an interest rate of 20 percent per month on loans to its customers. Like…

A: When we take a loan from banks they charge us interest on that loan. Similarly when we borrow money…

Q: You want to buy a $177,500 home. You plan to pay 30% as a down payment, and take out a 30-year loan…

A: Closing cost is the cost which has to be paid by either seller or the buyer to the government when…

Q: You want to buy a car, and a local bank will lend you $10,000. The loan will be fully amortized over…

A: Given: Loan Amount $10,000Annual Nominal Interest Rate 9%Number of Payments = 5 years * 12 months60…

Q: You need a 15-year, fixed - rate mortgage to buy a new home for $230,000. Your mortgage bank will…

A: A balloon payment is a significant, lump-sum amount due at the conclusion of a loan term, following…

Q: You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized over…

A: The monthly loan payment can be calculated by using the excel formula ''=PMT''Effective Annual Rate…

Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…

A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…

Q: You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend…

A: The lum sump that has to be paid at the end of the mortgage period for settling the loan at given…

Q: You want to buy a $230,500 home. You plan to pay 20% as a down payment, and take ou 5% for the rest.…

A: Honor code: Since you have posted a question with multiple sub-parts, we will solve the first three…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 5.5% interest. a)…

A: Monthly payment (C) = $1400 Monthly interest rate (r) = 0.00458333333333333 (i.e. 0.055 / 12)…

Q: ou want to borrow $27,000 from your local bank to buy a new car. you can afford to make monthly…

A: The given problem can be solved using RATE function in excel. RATE function computes interest rate…

Q: You are considering buying a house.  The home is currentlylisted for $750,000.  Terms for the loan…

A: The following is the excel formula used for the calculation:

Q: You want to borrow $77,000 from your local bank to buy a new sailboat. You can afford to make…

A: Compound = Monthly = 12Present Value = pv = $77,000Monthly Payment = p = $1300Time = t = 78

Q: a) How big of a loan can you afford? b) How much total money will you pay the loan company? c) How…

A: Loan is financial agreement where a person (lender) lends lump-sum money to other person (borrower)…

Q: You currently owe $118,580.44 on your mortgage loan, with an interest rate of 6.8%. Interest rates…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: You want to buy a $226,000 home. You plan to pay 5% as a down payment, and take out a 30-year loan…

A: Price = $226000 Down payment = 5% Interest rate = 6.55% Monthly interest rate (r) = 6.55%/12 =…

Q: maximum loan

A: Loan amount refers to the amounts which a person borrowed at any given time under the mortgage. It…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 7.9% interest.…

A: Present value of annuity.PV = A*wherePV = Present value of annuityA = periodic paymentsr = interest…

Q: When applying for a mortgage, find one that allows you to contribute more money than the required…

A: given, loan amount =$152,700 no of year =30 interest rate =3.89%

Q: You are buying a house and the mortgage company offers to let you pay a "point" (1% of the total…

A: Mortgage amount = $400,000 Time period = 30 years Interest rate = 6.50%  Additional Payment = 1% of…

Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…

A: Excel formula.

Q: You can afford a $1500 per month mortgage payment. You've found a 30 year loan at 5.7% interest. a)…

A: A mortgage also alluded to as a mortgage loan, is an agreement between a customer and a mortgage…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Present value of annuity is computed as follows:-PV= A*wherePV= Present value of annuityA= periodic…