Say that you purchase a house for $234,000 by getting a mortgage for $205,000 and paying a down payment of $29,000. If you get a 15-year mortgage with an interest rate of 8 percent, what are the monthly payments? What would the loan balance be in five years? If the house appreciates at 2 percent per year, what will be the value of the house in five years? How much of this value is your equity?
Say that you purchase a house for $234,000 by getting a mortgage for $205,000 and paying a down payment of $29,000. If you get a 15-year mortgage with an interest rate of 8 percent, what are the monthly payments? What would the loan balance be in five years? If the house appreciates at 2 percent per year, what will be the value of the house in five years? How much of this value is your equity?
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
Say that you purchase a house for $234,000 by getting a mortgage for $205,000 and paying a down payment of $29,000. If you get a 15-year mortgage with an interest rate of 8 percent, what are the monthly payments?
What would the loan balance be in five years?
If the house appreciates at 2 percent per year, what will be the value of the house in five years?
How much of this value is your equity?
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