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 interestrate 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 answerto 3 decimal places, e.g., 32.164.)Maximimum points

Mortgage loans are paid by monthly payments and these monthly payment carry the payment for interest…

You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the Your loan officer has offered you a mortgage with an APR of 4.80%. Alternatively, she tells you that you can "buy down to 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. Howe at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round to 3 decimal places, e.g., 32.164.) Maximimum points

You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the Your loan officer has offered you a mortgage with an APR of 4.80%. Alternatively, she tells you that you can "buy down to 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. Howe at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round to 3 decimal places, e.g., 32.164.) Maximimum points

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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Similar questions

Tim wants to borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's monthly payments be on his mortgage? b. Amortize the loan and determine: Interest expense for the first quarter of the loan. Cash flows for the first quarter of the loan. Loan balance at the end of the first quarter of the loan. Please show your calculations, part b is very important. If you are using the TVM chart, please state whether you used PVoA, FVoA, PVoSA, FVoSA.
You have agreed to loan some money to a friend at a simple interest rate of 62% your friend needs a $1470 loan you tell him to pay you back $3200.When should you tell him to pay you back if you want to hold that interest rate of 62%?
You need a 25-year, fixed-rate mortgage to buy a new home for $200,000. Your mortgage bank will lend you the money at a 6.6 percent APR for this 300-month loan. However, you can afford monthly payments of only $900, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. Required: How large will this balloon payment have to be for you to keep your monthly payments at $900? A) 48,522.47 B) 341,563.19 C) 67,932.38 D) 366,212.08 E) 352,127.00 Only typing answer Please explain step by step without table and graph
Please show how to solve this using excel and please show all formulas in the spreadsheet please!! Steven decides to buy a house with price of $500,000, Steven puts 20% down payment and considers a 15-year fixed rate mortgage to pay the remaining balance. The lender offers him three choices of the mortgage with monthly payments shown in the table as a., b., and c. Assume that the origination cost is $8,000. A. If the loan will be outstanding for 15 years, what is the effective cost for each choice? Which choice is most ideal? explain? B. Which mortgage choices are not properly priced? explain?
You need a 25-year, fixed-rate mortgage to buy a new home for $240,000. Your mortgage bank will lend you the money at an APR of 5.35 percent for this 300-month loan. However, you can afford monthly payments of only $800, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. How large will this balloon payment have to be for you to keep your monthly payments at $800? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Balloon payment
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A homeowner is looking to buy a home in Marvin Gardens. The most he can afford to pay in total is $3,080 per month. Yearly property taxes will be about $12,000 (escrowed monthly) and insurance is $187 per month. There are no other costs. If mortgage rates are 5.48% for a 30-year fixed-rate mortgage, how large can his mortgage be? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Answer the following question using a spreadsheet and the material in the appendix. You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year to a lender for the next 30 years. If the interest rate is 7% how much can you borrow today based on your ability to pay? What about if the interest rate is 3%? Maximum mortgage at 7%: $ Maximum mortgage at 3%: $
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The Nguyens are thinking of buying a home for $121,000. A potential lender advertises an 80%, thirty-year simple interest amortized loan at 8 and 1/4% interest, with an APR of 9.23%. Use the APR to approximate the fees included in the finance charge. (Round your answer to the nearest cent.)

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