The Wade family is interested in buying a home. The family is applying for a $200,000 30-year mortgage. Under the terms of the mortgage, they will receive $200,000 today to help purchase their home. The loan will be fully amortized over the next 30 years. Current mortgage rates are 7.5%. Interest is compounded monthly and all payments are due at the end of the month. What is the monthly mortgage payment? $989.66 $1,047.50 $1,111.25 $1,398.43 $1,563.97

The Johnson family is interested in buying a home. The family is applying for a $200,000 30-year mortgage. Under the terms of the mortgage, they will receive $200,000 today to help purchase their home. The loan will be fully amortized over the next 30 years. Current mortgage rates are 7.5 percent. Interest is compounded monthly and all payments are due at the end of the month. What portion of the mortgage payments during the first year will go toward interest? 89% 100% 75% 65% 95%

The Smiths are refinancing their home mortgage to a 15-year loan at 3.6% annual interest compounded monthly. Their outstanding balance on the loan is $160,000. (a) Under their current loan, the Smiths' monthly mortgage payment is $1515. How much will the Smiths be saving in their monthly mortgage payments by refinancing? (b) How much interest will the Smiths pay over the life of the new loan?

You purchase a home and have a $200,000 mortgage for 20 years at 5%. Utilize an amortization schedule.   What are the periodic annual payment required for the mortgage?   What are the interest payment for the first year?   What is the first year principal repayment   What is the balance owed at the end of the first year?   What are the interest paid on the principal repayment for the second year ?   What is the balance owed at the end of the second year ?   Why did the interest paid on the principal repayment change in the second year?