The Nicols are buying a house selling for $435,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 7% interest rate, the Nicols must pay 1.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 1.5 points? a) The amount of the mortgage is S b) The cost of the 1.5 points on the mortgage is $

The Nicols are buying a house selling for $435,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 7% interest rate, the Nicols must pay 1.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 1.5 points? a) The amount of the mortgage is S b) The cost of the 1.5 points on the mortgage is $

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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Similar questions

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?
Question # 3: David is buying a house for $256,000. To obtain the mortgage, David is required to make a 20% down payment. David obtains a 30-year mortgage with an interest rate of 6.15%. a.) Determine the amount of the required down payment. b.) Determine the amount of the mortgage (loan amount). c.) Determine the monthly payment. d.) Determine the total amount of interest paid on this mortgage.
Bill and Kim Johnson are purchasing a house for $252,000. Their Bank requires them to pay a 20% down payment. The current mortgage rate is 10%, and they are required to pay one point at the time of closing. Determine the total amount Bill and Kim will pay for their house, including principal, interest, down payment, and points (do not include taxes and homeowners' insurance) for the following lengths of their mortgage. a) 10 years b) 20 years c) 30 years
Ben buys a house. He obtains a $220,000, 30-year mortgage at 5%. Annual property taxes $1,800, property insurance $480 a year, house association fee $220 a month. Based on these items what is the total monthly mortgage payment?
The Fritzes are buying a house that sells for $107,000.The bank is requiring a minimum down payment of 20%.To obtain a 40-year mortgage at 9.5% interest, they must pay 4 points at the time of closing. a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 20% down payment. c) Find the cost of 4 points on the mortgage. a) The required down payment is $ enter your response here.
Todd Foley is applying for a $290,000 mortgage. He can get a $2,030 monthly payment for principal and interest and no points, or a $1,827 monthly payment with 4 points? How many months will it take Todd to cover the cost of the discount points if he takes the lower monthly payment?
A homebuyer bought a house for $250,000. The buyer paid 22 percent down. If the borrower took out a 30-year fixed-rate mortgage at a 7 percent annual interest rate, how much interest will the borrower pay over the life of the mortgage?
John Lee bought a home in Des Moines, Iowa, for $65,000. He put down 15% and obtained a mortgage for 30 years at 8 1/2%. What is (A) John's monthly payment and (B) the total interest cost of the loan? (Round your answers to the nearest cent.) A. B.
The Nicols are buying a house selling for $235,000. They pay a down payment of $35,000 from the sale of their current house. To obtain a 15-year mortgage at a 5% interest rate, the Nicols must pay 3.5 points at the time of closing. a) What is the amount of the mortgage? b) What is the cost of the 3.5 points?
Justin and Hayley are interested in a fixed-rate mortgage for $450,000. They are undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 3.5% for the 15-year mortgage, and 3.85% for the 30-year mortgage (a) What are the monthly principal and interest payments for EACH loan? (b) What is the total amount of interest paid on EACH loan? (c) Overall, how much more interest is paid by choosing the 30-year mortgage?
wally bee purchased a home for $600,000 with a $150,000 down oayment. he financed the remainder with a 6% mortgage for 30 years. wallys bank has offered to lower the 6% interest rate on his 30 year loan to 5.50%. if wally will pay 1 7/8 points. what will the points cost wally?
The Hills obtain a 30-year, $144,000 conventional mortgage at a 4.5% rate on a house selling for $180,000. Their monthly mortgage payment, including principal and interest, is $729.63. They also pay 2 points at closing. Determine the total amount the Hills will pay for their house over 30 years. The total amount is $ (Round to the nearest cent as needed.)

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