Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it  financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $194,000 home if you put 30% down and financed the remaining amount with a 30-year mortgage at 5.5% interest compared to a 30-year mortgage at 3.5% interest? (Use the amortization worksheet.)

Q: Assume that a borrower is expected to prepay a loan at the end of Year 5. Based on the following…

A: The Effective Cost of Borrowing is the true and comprehensive cost associated with obtaining and…

Q: How much of a mortgage could you afford? a.) $224,787.34 b.) $227,478.34 c.) $227,847.25 d.)…

A: PV = P x [1 - {1 / (1 + r)^n}] / r Here, PV = Present Value P = Monthly Payment i.e. $1500 r =…

Q: Use the following amortization chart: Selling price of home S 83.000 Down payment $ 5,000 Principal…

A: For interest rate (r) = 6.5% and n = 30 years, Payment per $1000 from the amortization table = 6.33…

Q: Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points.…

A: The discount points in mortgages are the points that can classify into borrower and lender points.…

Q: P LIC Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of…

A: A mortgage is a type of loan that is linked to real estate. It is a form of a secured loan on the…

Q: You can afford a $1200 per month mortgage payment. You've found a 30 year loan at 5.3% interest. a)…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

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: 1. You have just obtained a commercial mortgage for $6.25M with a 5-year term, 25-year amortization…

A: We are required to calculate an amortization table, therefore, we have to use excel and the excel…

Q: TOTAL INTEREST PAID. You are considering purchasing a home that requires $450,000 mortgage at 5.25%.…

A: Solution:- When an amount is borrowed, it can either be repaid as lump sum payment or in…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: given, pmt = $1400 m = 30 years  r = 8%  applying formula for pmt: pmt=loan amount…

Q: You own a home that was recently appraised for $370,000. The balance on your existing mortgage is…

A: working notes: Net  Appraised Value =$3,70,000*70% =$259,000

Q: Use PMT= to determine the regular payment amount, rounded to the nearest dollar. The price of a home…

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

Q: lortgage with Points. Home loans sometimes involve "points," which are es charged by the lender.…

A: Loan amount=$100000Two points are charged.Interest rate=1% per monthPeriod=360 months.

Q: Loan Basics nputs Present value nterest rate/year Number of years 325,000 4.00% 30 Present Value…

A: given, loan amount (P)= $325000 r=4% m=12 n = 30

Q: 1) Suppose that your gross annual income is $108,000. (a) What is the maximum amount you should…

A: The maximum amount you should spend on a mortgage payment is 28% of your gross income. You need to…

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: 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 can afford a $1200 per month mortgage payment. You've found a 30 year loan at 6.1% interest. a)…

A: A mortgage is a loan used to purchase a property or real estate. The property serves as collateral…

Q: A. Calculate the total amount paid for Mortgage A. B. Calculate the total interest paid for Mortgage…

A: Loan re-payments are done through periodic fixed amounts or sums. The periodic payments include both…

Q: You have been given the choice to reduce your mortgage interest rate for each point received by the…

A: Money which has been borrowed needs to be repaid to the lender along with the interest payments…

Q: Suppose you earn a gross income of $2,920.00 per month and apply for a mortgage with a monthly PITI…

A: Housing Expense Ratio(HER) is computed by dividing total expenses related to house by income for…

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: Assume that a broker agent introduces you to a local bank, and that bank offers you their lowest…

A: we need to use loan amortization formula given below for calculation of monthly payment PMT…

Q: Suppose you earn a gross income of $2,710.00 per month and apply for a mortgage with a monthly PITI…

A: Gross income (G) = $2710 Monthly PITI (P) = $501.35 Other obligations (O) = $428.18

Q: tently app your existing mortgage $129,350. your bank iS willing to loan up to 709 the appraised…

A: Equity in home is the value of that is available after paying of the mortgage on the loan and credit…

Q: Many mortgage company allow youpo "buy down" your interest rate of your loan by buying poir A point…

A: Loans are paid by the monthly payment that carry the payment of principal amount and payment of…

Q: The amount of down payment one makes on a home directly affects the size of the monthly payments

A: As per the guidelines, only one question is allowed to be solved. Please upload the remaining…

Q: Suppose you earn a gross income of $2,915.00 per month and apply for a mortgage with a monthly PITI…

A: Gross income (GI) = $2915 PITI = $900.74 Other obligations (O) = $174.90

Q: 3. For a house price of $775, 000 use the following information to calculate: * 5% down payment and…

A: Loan: A loan is a kind of debt that may be undertaken by a person or by a business. A quantity of…

Q: You can afford a $800 per month mortgage payment. You've found a 30 year loan at 7.3% interest. a)…

A: Using excel PV function to calculate the loan amount

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.