Purchase price: $320,000 LTV: 97% Term & Am: 25 years Interest Rate: 4.0% Holding period: 5 years Closing Costs PMI: .60% of original mortgage amount, paid per year on a monthly basis to the insurer Origination fee: 1% (paid to lender) Discount poiht: 1.00% (paid to lender) Underwriting fee: $750 (paid to lender) Survey: $400 (paid to surveyor) Appraisal: $500 (paid to appraiser)

Purchase price: $320,000 LTV: 97% Term & Am: 25 years Interest Rate: 4.0% Holding period: 5 years Closing Costs PMI: .60% of original mortgage amount, paid per year on a monthly basis to the insurer Origination fee: 1% (paid to lender) Discount poiht: 1.00% (paid to lender) Underwriting fee: $750 (paid to lender) Survey: $400 (paid to surveyor) Appraisal: $500 (paid to appraiser)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the following amortization chart: Selling price of home Down payment Principal (loan) Rate of interest Years Payment per $1,000 Monthly mortgage payment $ 79,000 $ 6,000 $ 73,000 6% 30 $ 5.9955 $ 437.67 Assume the interest rate rises to 7.5%. What is the total cost of interest with the new interest rate? (Use Table 15.1). Note: Round your intermediate calculations and final answer to the nearest cent. Total cost of interest: ????? The answer is NOT $110,753.57 TABLE 15.1 Amortization table (mortgage principal and interest per $1,000) Rate Interest Only 10 Year 15 Year 20 Year 25 Year 30 Year 40 Year 2.000 0.16667 9.20135 6.43509 5.05883 4.23854 3.69619 3.02826 2.125 0.17708 9.25743 6.49281 5.11825 4.29966 3.75902 3.09444 2.250 0.18750 9.31374 6.55085 5.17808 4.36131 3.82246 3.16142 2.375 0.19792 9.37026 6.60921 5.23834 4.42348 3.88653 3.22921 2.500 0.20833 9.42699 6.66789 5.29903 4.48617 3.95121 3.29778 2.625 0.21875 9.48394 6.72689 5.36014 4.54938…
A partially amortizing CAM (constant amortizing mortgage) loan is made for $125,000 at 6 percent interest for 15 years, with monthly compounding. There is a S25,000 balloon after 15 years. E H Monthly 16 Month Opening Balance Раyment Monthly Interest Amortization Ending Balance 97 81 98 82 99 83 84 100 101 85
Sales price = $375,000 Interest Rate on 1st mortgage = 3.750% Interest Rate on fixed rate 2nd mortgage = 4.00% 30-year fixed conventional Down Payment = 10% Taxes = $400 monthly Homeowners Insurance = $100 monthly What is the PITI using both mortgages? Choices: $2,014.35 $2,053.94 $2,118.41 $2,068.38
Consider a loan in the amount of BRL 420,000 to be repaid via PRICE, through 5 quarterly installments and an interest rate of 10% p.a., with a grace period of 3 quarters in which the interest is incorporated into the debt. Complete the financial worksheet for this loan.
Find the lender's yield for this loan. - Loan amount: $125,000 - Term: 15 years - Interest rate: 6.50 % - Lender "points" and origination fee: 2,000 - Third-party fees: $2,500 - (Assume no prepayment)
omplete the first month of the amortization schedule for the following fixed rate mortgage. Round the answer to the nearest cent. Mortgage: $79,000 Interest rate: 8.5% Term of loan: 15 years Amortization Schedule Payment Total Interest Principal Balance of Number Payment Payment Payment Principal 1 $777.94 (a) _____ (b) _____ (c) _____
1. A loan with the following terms is being made: Fixed rate, constant payment 9% interest rate $70,000 desired mortgage amount. $1,500 loan discount points paid by the buyer/borrower to the lender 25-year term, monthly payments a. Calculate the APR for federal truth-in-lending purposes (assume that the discount points are paid up front by the borrow and rolled into the loan principal). b. Do you think that the APR calculated in (a) reflects the likely return that the lender will receive over the term of the loan? List specific reasons that the lender's actual return might be different than the APR.
Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Paid on Interest Rate Payment Paid Principal Balance 11.6% $425.57 $64.23 $361.34 $6,280.78 Fill out the amortization schedule below. Annual Interest Paid on Payment Balance Interest Rate Paid Principal 11.6% $425.57 $64.23 $361.34 $6,280.78 (Round to the nearest cent as needed.)
Investigate the effect of the term on simple interest amortized auto loans by finding the monthly payment and the total interest for a loan of $10,000 at 7 and 7/8% interest if the term is the following. (Round all answers to the nearest cent.) (a) 3 years. Payment $312.79 Total interest $ 1260.34 (b) 4 years. Payment $ 243.54 Total interest $ (c) 5 years. Payment Total interest $ $ 202.17 X
Given the following Adjustable Rate Mortgage (ARM): Loan amount: Term: $100,000 20 years, monthly payment Discount point: 0 Origination fee: $8,000 Teaser rate: 7.25% Margin: 225 basis points Rate caps: 2.5% annually, 6% lifetime Market Index: 1 EOY Index 8.6% 9.5% 2 3 4 5 10.5% 11.5% 10.5% What are the proper interest rates for calculating the monthly payments from year 2 t lifetime cap) 10.85%, 11.75%, 12.75%; 13.75%; 12.75% 10%, 11.75%, 12.75%; 13.5%; 12.75% O None of the above is all correct O 9.75%, 11.75%, 12.75%, 13.25%, 12.75%
Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 6 percent per year, and the loan calls for equal annual payments. How much is the principal payment for the first year? Select one: a.$ 50,377.17 b.$ 22,446.59 c.$ 20,000 d.$ 18,846.59
Examine the loan of $210,000, 15-year mortgage with an APR of 3.8%. The borrower paid an extra $100 each month towards the principal. Determine the ending balance after the first month? Payment Beginning Monthly Extra Balance Number Payment Payment 1 210,000.00 a. 100.00 2 b. a. 100.00 3 208,351.69 a. 100.00 4 207,521.35 a. 100.00 5 206,686.86 a. 100.00 Towards Towards Interest Principal 1,050.00 1,045.89 d. 1,037.61 1,033.43 Ending Balance 822.10 209,177.90 826.21 830.34 e. 838.67 C. 207,521.35 206,686.86 205,848.19

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