The mortgage on your house is five years old. It required monthly payments of$1,390,had an original term of 30 years, and had an interest rate of8%(APR). In the intervening five years, interest rates have fallen and so you have decided torefinance-thatis, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments,and has an interest rate of6.125%(APR).a. What monthly repayments will be required with the new loan?b. If you still want to pay off the mortgage in 25 years, what monthly payment should you make after you refinance?c. Suppose you are willing to continue making monthly payments of$1,390.How long will it take you to pay off the mortgage after refinancing?d. Suppose you are willing to continue making monthly payments of$1,390and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing?

The mortgage on your house is five years old. It required monthly payments of -1,390, ad an original term of 30 years, and had an interest rate of -% APR). In the intervening five years, interest rates have fallen and so you have decided to finance-that , you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly pa nd has an interest rate of 125% APR). What monthly repayments will be required with the new loan? If you still want to pay off the mortgage in 25 years, what monthly payment should you make after you refinance? Suppose you are willing to continue making monthly payments of 1,390. How long will it take you to pay off the mortgage after refinancing? 1. Suppose you are willing to continue making monthly payments of 1,390

The mortgage on your house is five years old. It required monthly payments of -1,390, ad an original term of 30 years, and had an interest rate of -% APR). In the intervening five years, interest rates have fallen and so you have decided to finance-that , you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly pa nd has an interest rate of 125% APR). What monthly repayments will be required with the new loan? If you still want to pay off the mortgage in 25 years, what monthly payment should you make after you refinance? Suppose you are willing to continue making monthly payments of 1,390. How long will it take you to pay off the mortgage after refinancing? 1. Suppose you are willing to continue making monthly payments of 1,390

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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The mortgage on your house is five years old. It required monthly payments of $1,450, had an original term of 30 years, and had an interest rate of 9% (APR). In the intervening five years, interest rates have fallen and so you have decided to refinance—that is, you will roll over the outstanding balance into a new mortgage. The new mortgage has a 30-year term, requires monthly payments, and has an interest rate of 5.625% (APR). a. What monthly repayments will be required with the new loan? b. If you still want to pay off the mortgage in 25 years, what monthly payment should you make after you refinance? c. Suppose you are willing to continue making monthly payments of $1,450. How long will it take you to pay off the mortgage after refinancing? d. Suppose you are willing to continue making monthly payments of $1,450, and want to pay off the mortgage in 25 years. How much additional cash can you borrow today as part of the refinancing?
Suppose that you are currently making monthly paymentson a $163,133.00 20-year mortgage at 3.84% interest compound monthly. For the last 5 years , you have been paying the regular, monthly payments. You now have the option to refinance your current mortgage with a new 12-year mortgage that has an interest rate of 2.99% compounded monthly. Note that the lender of the new loan has a closing cost fee of $1,100 (for title insurance,home appraisal costs, etc. )for the new ( refinanced)mortgage. The lender stipulates that closing cost must be paid in cash and cannot be part of the new loan. You are to determine whether you would save or lose money in interest if you were to refinance your home. Take the closing into account when determining if you would save or lose money.
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $ 1850 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 5.750 % (APR). How much do you owe on the mortgage today? ( Note: Be careful not to round any intermediate steps less than six decimal places.)
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 7.500% (APR). How much do you owe on the mortgage today? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount you owe today is $ (Round to the nearest dollar.)
am. 22.
A year ago, a newly married couple decided not to buy a house, and they were looking at a house with a $200,000, 15-year monthly mortgage. The annual rate was 2.8%. Today, that same house and the same $200,000 monthly mortgage has an annual rate of 5.2%. What was the monthly payment for the 15-year monthly mortgage if they had taken out the mortgage a year ago? What is the monthly payment for the 15-year monthly mortgage based on today’s rate? What would the monthly payment be if they took out a 30-year monthly mortgage based on today’s rate? Did the couple hurt themselves by waiting? Explain with empirical evidence. You do not have to report the amortization tables
Consider a home mortgage of $125,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. ..... a. The monthly payment is $ (Do not round until the final answer. Then round to the nearest cent as needed.)
Ten years ago you took out $200,000, 30-year mortgage with an annual interest rate of 9 percent and monthly payments of $1,609.25. But since you took out that loan, interest rates have dropped. i. Determine the outstanding balance on your current loan for the remaining 240 payments. ii. If you refinance your loan at an annual rate of 7 percent, calculate the new monthly payment for another 20 years.
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $1,976 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.037% (APR). How much do you owe on the mortgage today? The amount you owe today is $ (Round to the nearest dollar) Cara
Four years ago, you took out a $375,000, 25-year mortgage with an interest rate of 5% and a 3% prepayment fee applicable for the first five years. If you decide to pay off this mortgage now, what will the balance due be?
A mortgage for a condominium had a principal balance of $48,400 that had to be amortized over the remaining period of 5 years. The interest rate was fixed at 4.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. $0 Round up to the next whole number b. If the monthly payments were set at $998, by how much would the time period of the mortgage shorten? 0 year(s) c. If the monthly payments were set at $998, calculate the size of the final payment. Round to the nearest cent 0 months $0.00
You just closed on a $384,757 home in Cincinnati, Ohio. Now you have a 30-year mortgage with an APR of 11.75 percent per year with monthly compounding. How much interest will you pay over the life of the mortgage? $1,013,401.86 $384,757.00 $1,398,158.86 O $15,890,464.10 O $61,141.15

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