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
Related questions
Question
Question 9 part c and d
Transcribed Image Text:You want to buy a $165,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at
4.15% interest for the rest. The bank will charge 2.5 points on the amount financed.
a) What is the amount of the down payment?
$ 33,000
b) How much is the loan amount going to be?
$ 132,000
c) What will be the amount charged for 2.5 points?
1 point is 1 % of the mortgage amount
d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount)
Hint: click here
Expert Solution
Step 1
A written agreement through which a lender gets the right to take the property that is put as a security by the borrower is term as the mortgage.
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