If I am planning to buy a house in McKinney, AR for $300,000. The lender offers me the following terms: I pay 20% down, get a mortgage for the rest. Mortgage rate will be 8% with zero points. Or Mortgage rate will be 7.75% with two points. If I choose the two point option, how much will be my payment as compared with option 1 at 8%. Assume I have 30 years of monthly payment

Q: Explain which is the better option.

A: Information Provided: House costs = $100,000 Down payment = $25,000 Option A = 3% APR for 20 years…

Q: a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the…

A:

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

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: a. Calculate your monthly payments on this mortgage. b. Construct the amortization schedule for the…

A: Amortization Schedule: It is a table containing details about each periodic payment. It includes…

Q: The price of a small cabin is $55,000. The bank requires a 5% down payment. The buyer is offered two…

A: Note: No intermediate rounding is done for calculation in the successive steps.   Cost of cabin is…

Q: The price of a home is $120,000. The bank requires a 15% down payment. The buyer is offered two…

A: Please find Answer belowExplanation:Step 1:Let,s calculate the monthly payment for the 15-year…

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: You are buying a house and will borrow $280,000 on a 30-year fixed rate mortgage with monthly…

A: Amount Borrowed $     2,80,000.00Tenure, years30APR4.15%If buy downInterest rate3.75%

Q: bu want to buy a condo in Toronto that costs $511,000 and have accumulated a 20% down payment. The…

A: Cost of condo=$511000Down payment=20%Term=20 yearsInterest rate=5.60%

Q: If I buy a truck at17,000 and plan to finance my purchase with a loan and repay over two years. The…

A: Equated monthly instalment refers to the monthly payment of loan to be paid for the loan taken. It…

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: do you use APR and EAR in finance calculations? I have a question here and unsure how to solve it. I…

A: Loans are paid by monthly payments and these monthly payments carry the payment for interest and…

Q: You are a loan officer trying to structure a 5/25 ARM mortgage. The interest rate in the first 5…

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Q: You plan to purchase a $240,000 house using a 30-year mortgage obtained from your local credit…

A: We need to use PMT function in excel to calculate monthly payment to pay off mortgage loan.The…

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 plan to buy a $300,000 home with a 20% down payment. The bank suggests two options: a 15-year…

A: Introduction: Mortgage: A mortgage is a loan from a bank or a mortgage lender that helps a person to…

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Q: The McDaniel family is purchasing a home, and their mortgage. The home costs $156,000 and they have…

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Q: You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local…

A: Let us dissect the computations and provide a more comprehensive explanation. a. Interest and…

Q: 1.) Carl and Melissa have a monthly income of $6,000. They want to buy a house for $200,000 and make…

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Q: You plan to purchase a $200,000 house using either a 30-year mortgage obtained from your local…

A: Let us dissect the computations and provide a more comprehensive explanation. a. Principal and…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

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Q: Benjamin knows that he will be receiving $100,311 to settle an insurance claim, but he will not…

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Q: You’ve decided to buy a house that is valued at $1 million. You have $250,000 to use as a down…

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Q: You are planning to purchase a house that will require a mortgage of $400,000.  You find 2 mortgage…

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

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Q: You plan to purchase a house for $295000 using a 30-year mortgage obtained from your local bank. You…

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Q: The price of a small cabin is ​$65,000. The bank requires a​ 5% down payment. The buyer is offered…

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Q: Robert plans to take out a mortgage for a house he just bought for $1 million. Bank A is offering a…

A: The calculation is:

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A: A loan is taken after giving the down payment. Mortgage payment on the loan amount will be received…

Q: You purchase a home costing $480,000 with a 20% down payment. After shopping around for a mortgage,…

A: Thus, Monthly Payment in option 1 is $1583.32 and in Option 2 is $1586.07

Q: Your credit score is in the range of 720-739 and you want to buy a house in Davis (CA). You have a…

A: A sum of money borrowed to meet a specific need is recognized as a loan. the loan taken to buy a…

Q: You have decided to become a homeowner with the purchase of a condominium in a newly redeveloped…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.