Yolanda is taking out a mortgage for S145,000 to buy a new house and is deciding between the offers from two lenders.She wants to know which one would be the better deal over the life of the mortgage loan, and by how much.Answer each part. Do not round intermediate computations, and round your answers to the nearest cent.If necessary, refer to the(a) Her credit union has offered her a 30-year mortgage loan at an annual interest rate of5.4%. Find the monthly payment.(b) A bank has offered her a 15-year mortgage loan at an annual Interest rate of 5.2%.Find the monthly payment.(c) Suppose Yolanda pays the monthly payment each month for the full term. Whichlender's mortgage loan would have the lowest total amount to pay off, and by howmuch?O Credit unionThe total amount paid would be Sless than to the bank.O BankThe total amount paid would be S less than to the credit union.

The given problem can be solved using PMT function in excel. PMT function provides installment…

Answered: Yölanda is taking out a mortgage for…

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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Angelina is buying a home for $417,000. She has a $26,000 down payment and the bank has offered her a 30-year fixed rate mortgage at 5.83%. What will be Angelina's monthly mortgage payment? Round your answer to two decimal places.
You plan to purchase a house for $295000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Your bank offers you the following two options for payment. Option 1: Mortgage rate of 5.35 percent and 1 point. Option 2: Mortgage rate of 5.25 percent and 2 points. Which option should you choose?
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with a mortgage amount of $4,500 and monthly payments. She takes the mortgage with 7.38% interest rate that requires Ann to pay 3 points upfront. Assuming Ann makes payments for 30 years, what is Ann's annualized IRR? Write your answer as a percent rounded to two decimal points without (e.g. if you get 5.6499%, write 5.65). the % sign
What does “nonrecourse” financing mean?
Aziza is taking out a $3439 mortgage with a 30-year, fixed rate, fully amortizing loan and with 6.8% interest. What will be Aziza's monthly payments? Round your answer to the nearest cent (e.g. if your answer is $1,000.567, enter 1000.57).
Celine has established that she can afford a weekly payment of $1,450.00. She would like to have a mortgage with an amortization of 25 years and a 7-year term. Current interest rates for a 7-year term are 6.55% compounded semi-annually not in advance. What the maximum conventional mortgage amount Celine would be able to acquire? a) $215, 498.80 b) $467,590.16 c) $935, 413.12 d) $935, 760.22please give me the answer with explaination and with right calculations
Please see attached
Cassandra received a 30 year loan of $320,000 to purchase a house. The interest rate on the loan was 3.70% compounded semi-annually. a. What is the size of the monthly loan payment? Round to the nearest cent b. What is the balance of the loan at the end of year 3? Round to the nearest cent c. By how much will the amortization period shorten if Cassandra makes an extra payment of $30,000 at the end of year 3? years and monthsm
Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage $ 1530 30-year mortgage $ 1074 (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage $ _______ ?? 30-year mortgage $ _______??? (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $
Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage$ = 30-year mortgage$ = (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage$ = 30-year mortgage$ = (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $
Phil Pittman is interested in a fixed-rate mortgage for $400,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage$ 30-year mortgage$ (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage$ 30-year mortgage$ (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $ Table 14-1: Monthly Payments to Amortize Principal and Interest per $1,000 Financed Monthly Payments(Necessary to amortize a loan of $1,000) InterestRate (%) 5Years 10Years 15Years 20Years 25Years 30Years 35Years 40Years 3.50 18.19 9.89 7.15 5.80 5.01 4.49 4.13 3.87 3.75 18.30 10.01 7.27 5.93 5.14 4.63 4.28 4.03 4.00 18.42 10.12 7.40 6.06 5.28 4.77 4.43 4.18 4.25 18.53…
Phil Pittman is interested in a fixed-rate mortgage for $400,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? 15-year mortgage$ 30-year mortgage$ (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage$ 30-year mortgage$ (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? $

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