What is the $ value of the points in Question 3? Information is copied below Your mortgage broker also offers you a mortgage with 3 points and a 6.25% interest rate. You have just bought a new house for $360,000 and are taking out a mortgage for $288,000. 8,640

Q: You get a $550,000 mortgage loan with 1¼ points. What dollar amount do you pay for points?

A: One mortgage point equal to 1 % of loan amount.

Q: You overhear your parents say that their mortgage payments are $1875/month and that they have 9…

A:

Q: A computer store sells for  $2,200,000 . The buyer made a  30%  down payment and secured a  20…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at…

A: When a house owner avails loan by using their house property as a security, it is termed as…

Q: You are looking at a one-year loan of $13,500. The interest rate is quoted as 9.7 percent plus two…

A: Here,Loan Amount $ 13,500Interest Rate9.7%Lender Upfront Cost2%Time Period in years1Lender Upfront…

Q: Complete the following table, which shows the monthly payments on a $100,000, 30-year mortgage at…

A: When the borrower borrows a loan from the lender, he has to pay a rate of interest on the borrowed…

Q: Suppose you want to purchase a $301,000 home, and you have the required $55,000 down payment in…

A: A mortgage refers to a covered loan that is borrowed for purchasing a property with the property…

Q: your home was recently appraised for $176,000. The balance on your existing mortgage is $111,500. If…

A: A home equity loan is a financial option that enables homeowners to borrow against the equity…

Q: Purchase price of home Down Mortgage Interest payment amount Monthly payment Mortgage рayment Total…

A: As there are multiple sub parts only the first three can be solved according to company’s…

Q: Daysha bought a house with a mortgage of $395,100. The mortgage is being financed with an interest…

A: We need to use NPER function in excel to calculate number of payments in both ordinary annuity and…

Q: Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it…

A: Credit Score is a 3-digit value which is assigned to an individual that has taken advances from…

Q: You can afford monthly payments of $700. If current mortgage rates are 2.82% for a 15-year fixed…

A: We will have to use and apply the concept of time value of money. The amount that you can afford to…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: For the second mortgage application, calculate the percentage of appraised value and the potential…

A: answer and calculations are given below

Q: You want to purchase a house and are reviewing variations in how to structure the mortgage. One of…

A: Note: Replace "PMT" in the formulas with the actual PMT() calculations from Excel.Once these…

Q: Using mortgage calculator Compare the following scenarios: a. Loan amount of; $800,000 @ 3.00%…

A: Formula for Calculating Monthly Payments M = P [ i (1+i)n] / [ (1+i)n - 1] where,  M = Monthly…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: lust show all your work (NEATLY) and place answer in the blank. Use 6 decimal places for the…

A: A mortgage is a covered loan that a borrower takes for the purchase of a property. The property…

Q: A family has a $95,877, 25-year mortgage at 5.1% compounded monthly (A) Find the monthly payment and…

A: Using the PMT function in excel

Q: Find the monthly payment (in $) and the total interest (in $) for a mortgage of $46,000 at 5% for 40…

A: Here, To Find: Monthly payment =? Total Interest =?

Q: Find the monthly payment for a 289,500.00 home with 20% down payment. The terms of the mortgage are…

A: The cost of home = 289,500 The down payment = 20%  Interest rate on mortgage = 8.5%  The time period…

Q: lortgage with Points. Home loans sometimes involve "points," which are es charged by the lender.…

A: Loan amount=$100000Two points are charged.Interest rate=1% per monthPeriod=360 months.

Q: Suppose a bank offers you a 10% interest rate on a 25-year mortgage to be paid back with monthly…

A:

Q: elling Price of Home Down Payment Rate of Interest Years $ 190,000.00 $ 50,000.00 7% 25 Required:…

A: Here, Corrected Table 15.1:

Q: When you purchase a home by securing a mortgage, the total paid toward the principal is your equity…

A: Time Period = 30 Years Frequency = Monthly Payment (360)

Q: Find the first month of the amortization schedule for a fixed-rate mortgage if 70,000 with an…

A: Loans are paid equal and fixed monthly payments and these payments carry the payment for loans and…

Q: Find the total monthly payment, including taxes and insurance, for the given mortgage loan using the…

A: Here, Particulars Values Loan amount (PV)  $ 110,000.00 Interest rate 9.00% Time period (in…

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

Q: Find the indicated amounts for the fixed-rate mortgages. Purchase price of home Down Mortgage…

A: Purchase price of the house = $130,000 Down payment = $0 Interest rate per year = 5% Number of years…

Q: To purchase a Hun and I took out a 25 year mortgage for 275000 that charges 4.25 interest and I want…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: You have been given the choice to reduce your mortgage interest rate for each point received by the…

A: Money which has been borrowed needs to be repaid to the lender along with the interest payments…

Q: Question 4: Application of Time Value of Money to Mortgages Shanna wants to buy a house costing…

A: The amortization refers to the systematic and regular repayment of loan and interest over the period…

Q: You bought a house and need a mortgage for $1,014,597. The interest rate on the mortgage is 2.5% and…

A: Compound = 24Principal Amount = p = $1,014,597Interest Rate = r = 2.5 / 24 %Number of Payment = n =…

Q: Show the first two lines of the amortization table for your new home mortgage, assuming a selling…

A: Here, Particulars Values Selling price  $1,18,500.00 Down payment 6.00% Interest rate 5.30%…

Q: EASE DO NOT ROUND THE ANSWERS Selling Price of Home Down Payment Rate of Interest Years $…

A: Mortgage loans are common in buying homes because mortgage loans are paid by the monthly payments…

Q: Your monthly mortgage payment (principal plus interest) is $1,500. If you have a 34-year loan with a…

A: Information Provided: Interest rate = 0.25% per month Period of loan = 34 years Monthly payment =…

Q: Appraised Lender's Percentage of Value Percentage Appraised Value (in $) $125,500 60% LA Balance of…

A: Mortgage is secured loan in which the home is collateral and is paid by monthly payments that are…

Q: 29. You get a $310,000 mortgage loan at 6.75% interest. Your monthly payment (PI) is $1,650.…

A: Principal repayment = Total payment - Interest

Q: Write out the complete formula using cell references instead of using cell names (Term, Rate, etc.).…

A: Using excel PMT function

Q: r with explanation and conclusion to all parts Your bank has pre-approved a mortgage for the…

A: Mortgage loans are paid by monthly payment that carry the payment for interest and mortgage. These…

Q: You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year…

A: The amount that you can borrow today based on your ability to pay will be the present value of all…

Q: A lender offers you a $125,000, 30 year mortgage with monthly payments of $769.65. What’s the…

A: The lender charges the interest from the borrower in exchange for extending the loan. The borrower…

Q: Anna is buying a house selling for $255,000. To obtain the mortgage, Anna is required to make a 15%…

A: Mortgage amount can be calculated as excess of total house cost over and above the amount of down…

Q: Suppose you earn a gross income of $2,710.00 per month and apply for a mortgage with a monthly PITI…

A: Gross income (G) = $2710 Monthly PITI (P) = $501.35 Other obligations (O) = $428.18

Q: You want to buy a house for $250,000.  The bank requires a down payment of 25%.  What is the amount…

A: Given: House cost =$250000Down payment =25%

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.