Seema takes out a 5 year mortgage for $950,000 at an interest rate of i(52) = 4.875%. The amortization period is 20 years and she will make weekly payments. After 3 years the rate changes to i(52) = 4.500%. What is the outstanding balance at the end of the term (5 years) of the mortgage (taking into account the change in rates!)? a. $784,671.52 b. $706,204.36 c. $761,131.37

Seema takes out a 5 year mortgage for $950,000 at an interest rate of i(52) = 4.875%. The amortization period is 20 years and she will make weekly payments. After 3 years the rate changes to i(52) = 4.500%. What is the outstanding balance at the end of the term (5 years) of the mortgage (taking into account the change in rates!)? a. $784,671.52 b. $706,204.36 c. $761,131.37

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

See similar textbooks

Similar questions

Juwen obtained a 25-year residential mortgage at 4.75% compounded semiannually for a 5-year term. If the initial loan was $381,500 how much will the monthly mortgage payments be?
Bob got a 30 year Fully Amortizing FRM for $1,500,000 at 4%, except with non-constant payments. For the first 2 years Bob will pay $1,250 per month. The loan will become a fully amortizing mortgage after 2 years. What will be the balance on this mortgage after 2 years? (Write the answer as a number rounded to two decimals (e.g. if you get $50,66666, write 50.67).
Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a mortgage with an amortization of 25 years and a 7-year term. Current interest rates for a 7-year term are 6.55% compounded semi-annually not in advance. What the maximum conventional mortgage amount Celine would be able to acquire? a) $215, 498.80 b) $467,590.16 c) $935, 413.12 d) $935, 760.22please give me the answer with explaination and with right calculations
Donelle just purchased a new home with a $400,000 mortgage with a fixed rate of 8.5% (APR) and a 30-year maturity. What are Donelle's monthly payments on the mortgage? O $3,101.69 O $2,833.33 O $2.907,85 $3,075.65
7. Ann obtains a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000 at 7.05%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)?
Erwin and Eleni have an outstanding mortgage balance of $175,000. They have 14 months remaining on their mortgage at a fixed-rate of 4.5% compounded semi- annually on their five-year (60 month) mortgage term. The current five-year fixed rate of interest for a mortgage is 3.1%, compounded semi-annually. They would like to "blend and extend" their existing mortgage for another five-year term. What rate would they be charged under a blend-and-extend option? A 3.98% B 4.01% C 4.56% 3.80% E 3.43%
ngMr. Aman wants to refinance his mortgage loan as the interest rates in the market arereduced. The outstanding balance will be borrowed by Aman at the rate of 5% APR. Themortgage loan term was 15 years at 6% APR. The monthly payment on current mortgageloan is $4,000. Aman just made 15th payment. How much amount Aman needs to borrowto refinance his mortgage?(a) $476,591.71(b) $448,690.58(c) $474,014.06(d) $505,820.97
How much would Doug save in interest if he amortized his mortgage over 15 years, rather than 25 years, and assuming he makes monthly payments. The total mortgage amount is $440,000 and the interest rate is 5.4% compounded semi-annually.
A borrower has a 30-years mortgage loan for $400,000 with an interest rate of 6% and payments. If she wants to pay the loan after 8 years, what would the outstanding balance of the loan?
Ann obtains a 30-year Interest Only Fixed Rate Mortgage with monthly payments for $1,500,000 at 7.05%. What will Ann’s monthly payments be?
arnie and beth litner recently bought a house for $425,000. They put 10% down as a down payment and took out a 15-year fixed mortgage with monthly payments and an interest rate of 6.8%. 1)What is their monthly payment? 2) What proportion(%) of their mortgage payments made during the first five years will be applied to interest?
Ashley Olsen and Louis Eisner took out a $220,000, 25-year mortgage at an APR of 2.1%. The monthly payment was $780.64. What will be their total interest charges after 25 years?

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

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

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS