None You are buying a house and will borrow $185,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase.Your loan officer has offered you a mortgage with an APR of 4.20 percent. Alternatively, she tells you that you can "buy down" theinterest rate to 3.90 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loanvalue. How many points, at most, would you be willing to pay to buy down the interest rate?Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.164.Answer is complete but not entirely correct.Maximum points141.104

Step 1: The normal mortgage annual rate is 4.20%, which converts to a monthly rate of…

Answered: You are buying a house and will borrow…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

See similar textbooks

Similar questions

You are buying a house and will borrow $197,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 5.00 percent. Alternatively, she tells you that you can “buy down” the interest rate to 4.75 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.164.)
You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.80 %. Alternatively, she tells you that you can "buy down" the interest rate to 4.45% If you pay points up front on the loan. A point on a loan is 1% (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.164.) Maximimum points
You are buying a house and will borrow $185,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.20 percent. Alternatively, she tells you that you can "buy down" the interest rate to 3.90 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.164. Answer is complete but not entirely correct. Maximum points 141.104
You are buying a house and will borrow $360,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.45 percent. Alternatively, she tells you that you can “buy down” the interest rate to 4.1 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate?
You are buying a house and will borrow $275,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.10 percent. Alternatively, she tells you that you can "buy down" the interest rate to 3.75 percent if you pay points up front on the loan. A point on a loan is 1 percent (one percentage point) of the loan value. How many points, at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) Maximum points
You are buying a house and will borrow $205,000 on a 30-year fixed rate mortgage with monthly payments to finance the purchase. Your loan officer has offered you a mortgage with an APR of 4.35%. Alternatively, she tells you that you can “buy down” the interest rate to 4.15% if you pay points up front on the loan. A point on a 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. What is the maximum number of points that you would be willing to pay now? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.162.)
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?
You plan to purchase a $100,000 house using a 30-year mortgage obtained from your local credit union. The mortgage rate offered to you is 8.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. Calculate the amount of interest and, separately, principal paid in the 25th payment. (pls show solution)
Suppose your gross monthly income is $5,200 and your current monthly payments are $425. If the bank will allow you to pay up to 36% of gross monthly income (less current monthly payments) for a monthly house payment, what is the maximum loan you can obtain if the rate for a 30-year mortgage is 4.65%? (Round your answer to the nearest cent.) Need Help? Read It Submit Answer
You can afford a $1200 per month mortgage payment. You've found a 30 year loan at 5.3% interest. a) How big of a loan can you afford? (Round to the nearest cent, as needed.) S b) How much total money will you pay the loan company? (Round to the nearest cent, as needed.) S c) How much of that money is interest? (Round to the nearest cent, as needed.) S Question Help: Video 1 Video 2 Submit Question Search hp
You plan to purchase a $320,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 5.20 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Month 1 2 3 179 180 Construct the amortization schedule for the mortgage? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Req 82 Total Interest Amortization Schedule for the 15-Year Mortgage Interest Cumulative Principal Principal 272,000.00 270,999.26 Cumulative Interest Ending Balance
You plan to purchase a $220,000 house using a 15-year mortgage obtained from your bank. The mortgage rate offered to you is 4.75 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage. b. (1) Construct the amortization schedule for the mortgage. b. (2) How much total interest is paid on this mortgage? Complete this question by entering your answers in the tabs below. Req A Req B1 Amortization Schedule Req B2 Total Interest Construct the amortization schedule for the mortgage? Note: Round your intermediate calculations and final answers to 2 decimal places. (e.g. Real-World Amortization Remaining Month Total Payment Interest Principal Balance 1 696.67 672.32 175,327.68 2 175,327.68 694.01 1,347.30 174,652.70 3 691.33 173,975.05 179 10.77 1,363.59 180 5.40 176,000.00 0.00

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SEE MORE TEXTBOOKS