QUESTION 30You buy a home for $460 thousand doliars, paying 9% down, with a 30-year mortgage with a 4.07% interest rate. How many payments do you need to make before you can cancelyour PMI? Note: Assume the home's value stays constant, round up to the nearest whole number.

PMI is the monthly payment for insurance and other related expenses and can be removed when there is…

QUESTION 30 You buy a home for $460 thousand dollars, paying 9% down, with a 30-year mortgage with a 4.97% interest rate. How many payments do you need to make be your PMI? Note: Assume the home's value stays constant, round up to the nearest whole number

QUESTION 30 You buy a home for $460 thousand dollars, paying 9% down, with a 30-year mortgage with a 4.97% interest rate. How many payments do you need to make be your PMI? Note: Assume the home's value stays constant, round up to the nearest whole number

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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Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.84% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.) $ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
QUESTION 22 Ann wants to buy a building. The annual NOI for the building will be $175,000. She wants to get a 20 year interest only fixed rate mortgage at an annual rate of 8.35% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.20. What is the largest annual loan payment the lender will allow Ann to make based on the DSCR? OA. $1,746,506.99 B. $210,000.00 OC. $145,833.33 OD. $102,600.26
#9 You have been shopping for a new home. You have a choice of financing. You can chose either a $200,000 mortgage at a 4.75% for 30 years, or a $200,000 mortgage at 3.5 percent for 15 years. a. Calculate the monthly payment for both the 30-year and 15-year mortgages. b. Calculate the amount of interest paid over the life of the loan for both mortgages. c. Chose the best mortgage for you and explain your answer.
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Value of a retirement annuity Personal Finance Problem An insurance agent is trying to sell you an annuity, that will provide you with $5,100 at the end of each year for the next 30 years. If you don't purchase this annuity, you can invest your money and earn a return of 5%. What is the most you would pay for this annuity right now? Ignoring taxes, the most you would pay for this annuity is S. (Round to the nearest cent.)
6. You plan to buy a house that sells for $250,000. You plan to put 10% down and finance the rest. You are exploring the following financing options: i. 30-yr mortgage with a stated annual interest of 6.5% ii. 15-yr mortgage with a stated annual interest of 6%. You plan to pay off the loan by making equal monthly payments. What would be your monthly payment if you take the 30-yr mortgage? How much (total) interest would you pay over the life of the loan? $1422.15, $286,974 b. What would be your monthly payment if you take the 15-yr mortgage? How much (total) interest would you pay over the life of the loan? $1898.68, $116,762.01 a.
13. Mortgage payments Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning, and then you make monthly payments to the lender. You've decided to buy a house that is valued at $1 million. You have $100,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $900,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate used to four decimal places.) Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $900,000…
Mortgage, part 1 (The Loan)5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment? How much of the purchase price did you finance with the loan? What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much did you pay to the lender (total) over the first 5 years? How much of what you paid to the lender in the first 5 years was interest? If you paid this loan for all 30 years, how much interest would you pay?
QUESTION 5 Ann wants to buy a building. The annual NOI for the building will be $165,000. She wants to get a 20 year interest only fixed rate mortgage at an annual rate of 7.35% with annual compounding and annual payments to buy the building. The lender has a minimum Debt Service Coverage Ratio (DSCR) of 1.25. The lender also has a maximum LTV requirement of 70%. The asking price is $3,000,000. What is the largest mortgage the lender will give Ann based on both the DSCR and LTV requirements? A. $1,795,918.37 OB. $2,100,000.00 OC. $2,532,047.61 OD. $132,000.00
aa.3

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