Suppose you are buying a house. You find the perfect one for $215,000. The bank offers you a 30-year fixed rate mortgage with 6.25% interest, compounded monthly. A. If you finance the entire amount (no down payment), what will your monthly payments be? B. Suppose you decide to make a down payment of 20% of the cost of the house. How much is your down payment? C. With the 20% down payment, how much will your monthly payments be? D. How much will you have paid on the mortgage at the end of 30 years in the different situations?

Suppose you are buying a house. You find the perfect one for $215,000. The bank offers you a 30-year fixed rate mortgage with 6.25% interest, compounded monthly. A. If you finance the entire amount (no down payment), what will your monthly payments be? B. Suppose you decide to make a down payment of 20% of the cost of the house. How much is your down payment? C. With the 20% down payment, how much will your monthly payments be? D. How much will you have paid on the mortgage at the end of 30 years in the different situations?

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 are buying your first condo for $190,000, and you will make a $10,000 down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at 3.5% nominal interest rate, with the first payment due in one month. What will your monthly payments be? You are not required to show calculations. However to receive credit you must provide the inputs used (N, PMT, FV, I/Y, PV) to solve. If you utilize a template, you can copy and paste the section used in the submission. $808.28 $853.18 $527.78
7. After 5 years, you decide not to use the money for a car. Instead, you'll take $10,000 of it to buy a house. You find a home you love for $375,000. a. Assuming that you get an interest rate of 5.75%, plan on taking about a 30- year mortgage, and you will put a down payment of $8,000, what will your monthly payment be? (hint: find PMT, and don't forget to take out the down payment!) b. Yikes! That payment is way too much! You want to have a mortgage payment of $1200. Assuming that you get an interest rate of 5.75%, plan on taking about a 30-year mortgage, and a payment of $1200 each month, how big of a mortgage should you get? (hint: find PV. Do NOT take out a down payment.) c. After your findings in 5b, you aim for a $200,000 mortgage. Assuming you get an interest rate of 5.75%, plan on taking about a 30-year mortgage, and the mortgage is $200,000, how much will you pay over the life of the mortgage? (hint: find the PMT first) d. How much of that was interest if the loan was…
You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)
You want to buy a $251,000 home. You plan to pay 5% as a down payment and take out a 30-year loan for the rest. How much is the loan going to be? What will the monthly payments be if the interest rate 5%? What will the monthly payments be if the interest rate is 6%?
have tried this and keep getting the answer wrong i can’t figure it out
Suppose you want to buy a $141,000 home. You found a bank that offers a 30-year loan at 3.7% APR. What will be your monthly payment? (Round to the nearest cent.) 2$ How much would you end up paying the bank for the home after 30 years? (Round to the nearest cent.) 2$ Suppose you wanted to reduce the time of your loan to 25 years. What would be your new monthly payment? (Round to the nearest cent.) $4 How much would you end up paying the bank for the home after 25 years? (Round to the nearest cent.) $ How much did you save by reducing the time of your mortgage loan? (Round to the nearest cent.)
You want to buy a $191,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 4.55% interest for the rest. a) How much is the loan amount going to be? 152,800 b) What will your monthly payments be? $780 c) How much total interest do you pay? d) Suppose you want to pay off the loan in 15 years rather than 30. What will your monthly payment be? $1 Enter an integer or decimal number [more..] e) How much money in interest will you save if you finance for 15 years instead of 30 years?
You want to buy a $216,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 3.25% interest for the rest.a) What is the amount of the down payment?b) What will the amount of the mortgage?c) The bank charges 2 points on the loan. What is the amount charged for points?
You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment. For the rest you get a 30-year 4.0% mortgage. What will be your monthly mortgage payment in S (assume no early repayment)?
Suppose you want to purchase a $ 165000 house. If you put 20% down and finance the rest in a 30 year mortgage at an interest rate of 3.5%, what will your monthly payments be? Monthly payment =
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.84% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)$ 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.)
4. You are considering buying a new house. The house you want will cost you $150,000. You have $50,000 in cash to spend but will need to finance the rest. The bank has offered you a 30 year mortgage at 4%. What will be your monthly payment across those 30 years (Remember to convert to monthly rather than annual payments).

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