The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $185,000. The terms at bank A are a 15% down payment, an interest rate of 10%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 20% down payment, an interest rate of 10.5%, a 25-year conventional mortgage, and no points. Which loan should the Ruffins select in order for the total cost of the house to be less? Click here for table of Monthly Payments From which bank should the Ruffins take the loan? O Bank A O Bank B
Q: Tony is offering two repayment plans to Phil for a long overdue loan. Offer 1 is to receive a visit…
A: We take loans when we have a cash crunch or when we need funds to buy something like a car, a house,…
Q: The Nicols are buying a house selling for $445,000. They pay a down payment of $45,000 from the…
A: Given Information: Cost of the house is $445,000 Down payment is $45,000 Mortgage term is 15 years…
Q: You plan to purchase a house for $166,000 using a 15-year mortgage obtained from your local bank.…
A: Discount points refer to the optional fees (extra charges) over the agreed stated interest rate on a…
Q: John wants to buy a property for $121,250 and wants an 80 percent loan for $97,000. A lender…
A: Here, To Find: Part a. Disbursed amount =? Part b. APR for the borrower after 30 years =? Part c.…
Q: The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $115,000. The…
A: Here,Bank ABank BCost of House $ 115,000.00 $ 115,000.00Down Payment20%15%Interest Rate10.50%10%Time…
Q: You want to buy a house thatcosts $140,000. You have $14,000 for a down payment, but your credit is…
A: Excel Spreadsheet: Excel Workings:
Q: The Martinezes are planning to refinance their home. The outstanding balance on their original loan…
A: Amortization of loan means payment of loan amount in equal instalments either monthly, quarterly,…
Q: The Martinezes are planning to refinance their home. The outstanding balance on their original loan…
A: Monthly payment refers to an amount that is paid every month for the repayment of a loan amount…
Q: The Fritzes are buying a house that sells for $74,000. The bank is requiring a minimum down payment…
A: Here, Cost of Property is $74,000 Required Down Payment is 20% Closing Cost Point is 4 points
Q: The Fritzes are buying a house that sells for $92,000. The bank is requiring a minimum down payment…
A: Here,Cost of House is $92,000Down Payment is 15%Closing Point is 3%
Q: The Martinezes are planning to refinance their home. The outstanding balance on their original loan…
A: A fixed rate mortgage is one in which the interest rate remains constant over the entire term of the…
Q: The Simpsons are planning to purchase a new home. To do so, they will need to take out a 30-year…
A: Amortization of a loan refers to the regular and equal repayment of the loan and interest over the…
Q: he Nicols are buying a house selling for $435,000. They pay a down payment of $35,000 from the…
A: Data given: Cost of house = $435,000 Down payment= $35,000 Required: Amount of the mortgage= ?
Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The Mrtinezes are planning to refinanace their home (assuming that there are no additional finance…
A: EMI refers to Equal monthly installments which means the repayment of the total loan by the borrower…
Q: norigage has 21 years left, and has an APR of 8.707% Withn montniy payments of $1,449. at is the…
A: The mortgage loans are to be paid by the monthly payments and these monthly payments carry the…
Q: A house is selling for $150,000. A deposit of $20,000 was made when the sales contract was signed.…
A: Mortgage : A mortgage is a type of loan specifically used to purchase real estate, such as a home or…
Q: The Nicols are buying a house selling for $245,000. They pay a down payment of $45,000 from the sale…
A: One mortgage point is equivalent to 1% of the loan. Payment of mortgage points reduces the…
Q: Calculate the total amount paid for Mortgage A. Calculate the total interest paid for Mortgage A.…
A: Home loan mortgages are paid on a monthly basis. During the initial years interest amounts are…
Q: Robert plans to take out a mortgage for a house he just bought for $1 million. Bank A is offering a…
A: The calculation is:
Q: The Fritzes are buying a house that sells for $173,000. The bank is requiring a minimum down payment…
A: A mortgage is a covered loan that has been borrowed for the purchase of the real estate. The real…
Q: You decide to purchase a building for $30,000 by paying $5,000 down and assuming a mortgage of…
A: The annual percentage rate (APR): It is the total interest expressed as percentage paid on an loan.
Q: John wants to buy a property for USD 105,000 and once on 80% loan for USD 84000. A lender indicates…
A: Property Price $ 1,05,000.00 Loan 80% Loan Value $ 84,000.00 loan origination fee…
Q: The Fritzes are buying a house that sells for $107,000.The bank is requiring a minimum down payment…
A: Given Price of house is $107,000 Down payment is 20%
Q: The Nicols are buying a house selling for $235,000. They pay a down payment of $35,000 from the sale…
A: Here, Cost of House is $235,00 Down Payment is $35,000 Interest Rate is 5% Time Period is 15 years…
Q: Chuck Wells is planning to buy a Winnebago motor home. The listed price is $175,000. Chuck can get a…
A: 1. Listed Price 175000 Down Payment = Listed price*20/100 Amount Left = Listed Price - Down Payment…
Q: Charlotte wants to get a loan for $598000 to buy a house. The bank charges an annual interest rate…
A: In the given question we require to calculate the amount of monthly mortgage payment from following…
Q: buying a house The bank is requiring a) Determine the required down payment. b) Determine the amount…
A: A loan is a contract between the loan taker and the loan provider. In This contract, loan providers…
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 2 images
- The Ruffins are negotiating with two banks for a mortgage to buy a house selling for $115,000. The terms at bank A are a 20% down payment, an interest rate of 10.5%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 15% down payment, an interest rate of 10.0%, a 25-year conventional mortgage, and no points. Which loan should the Ruffins select in order for the total cost of the house to be less?The Fritzes are buying a house that sells for $173,000. The bank is requiring a minimum down payment of 10%. To obtain a 30-year mortgage at 11.5% interest, they must pay 2 points at the time of closing a) Determine the required down payment. b) Determine the amount of the mortgage on the property with the 10% down payment. c) Find the cost of 2 points on the mortgage. a) The required down payment is $ b) The mortgage on the property is S c) The cost of the 2 points on the mortgage is $ (Round to the nearest dollar as needed.)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.
- You plan to purchase a house for $166,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 15 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. Your bank offers you the following two options for payment. Option 1: Mortgage rate of 7 percent and zero points Option 2: Mortgage rate of 6.75 percent and 3 points Which option should you choose? Option 1 None is the correct answer Option 2 Indifferent between the two optionsAfter a conversation with your banker, you’ve agreed to a 20% down payment on your $182,188 home. To keep this problem and your calculations relatively brief, assume that the bank has offered you a mortgage loan for $145,750 that carries a 6% interest rate, semiannual payments of $26,905, and a 3-year term. Remember, the process is the same when you are preparing for either 6 semiannual payments of nearly $27,000 or 360 monthly payments of $873.85 for a 30-year conventional mortgage.Complete the following loan amortization table by entering the correct answers. Notes: 1. As all values are denominated in U.S. dollars, you do not have to enter any dollar signs. 2. Round all interest payments down to the nearest whole dollar. 3. Rounding creates a situation in which the numbers in the loan’s final payment are often unequal. Notice in this problem, the ending balance for payment 6 is –$2. Therefore, your final payment would actually be reduced by $2 to $26,903. In the real world,…John wants to buy a property for $121,250 and wants an 80 percent loan for $97,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 9 percent interest; however, a loan fee of $4,800 will also be necessary for John to obtain the loan. Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate
- Mr. Green wishes to purchase a house selling for $125,000. The bank requires a 20 % down payment and a payment of two points at the time of closing. What is the cost of two points on the mortgage?you are buying a house and will borrow $225,000 on a 30-year fixed reate mortgage with monthly payments to finance the purchase. your loan officer has offered you a mortgage with an APR of 4.3%. Alternatively, she tells you that you can “ buy down ” the interest rate to 4.05% if you pay points up front on the loan is 1 % ( one percentage point) of the loan value. you believe that you will live in the house for only eight years before selling the house and buying another house. this means that in eight years, you will pay off the remaining balance of the original mortgage. how many points, at most, would you be willing to pay to buy down the interest rate? Question) maximum points?A house is selling for $150,000. A deposit of $20,000 was made when the sales contract was signed. The down payment is 30% and the balance will be financed with a 25 year mortgage at 4.25% and 4 discount points. If the sellers are responsible for the broker’s commission (6% of the purchase price); $1700 in other closing costs; and the existing mortgage with a balance of $30,000; what proceeds will they receive on the sale of the property?
- John wants to buy a property for USD 105,000 and once on 80% loan for USD 84000. A lender indicates that a fully amortizing loan can be obtained for 30 years at 8% interest payable monthly. However a loan origination fee of USD 3500 will be necessary for John to obtain the loan.Required:a) how much will the lender actually distributeb) what is the effective interest rate for the borrower assuming that the mortgage is paid off after 30 yearsC) if John pays the loan after five years what is the effective interest rate and why it's different from the effective interest in (b)aboveThe Mrtinezes are planning to refinanace their home (assuming that there are no additional finance charges). The outstanding balance on their original loan is $100,000. Their finance company has offerend them two options: option a: A fixed rate mortage at an interest rate of 6.5%per year compounded monthly, payable over a 25 year period in 300 equal monthly installments. option b: A fixed rate mortgage an interest rate of 6.25% per year compounded monthly, payable over a 15 year period in 180 equal montly installments. a)find the monthly payment required to amortize each of these loans over the life of the loan (round to the nearest cent) option a option b b) HOw much interst would the Martinezessave in they chose the 15 year mortgage instead of the 25 year mortgage? Use the rounded mothly payment values from part a ( round your answer to the nearest cent)You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 3.75 percent and zero points. Option 2: Mortgage rate of 3.50 percent and 2 points. Which of the following is correct? Round your calculations/answers to two decimals. I. In exchange for $4,000 up front, Option 2 reduces your monthly mortgage payments by $28.14. II. The present value of the monthly savings is less than the points paid up front. III. Option 1 is the better choice. Formulas and Equations M = where P is principal, M is periodic payment, y interest rate, PVIFAny% = In period j, principal repayment is AMj = M Interest payment is is Ij = M[ ]=M - AMj Group of answer choices I only II only I and II only II and III only I, II, and III