You borrowed a mortgage of $541000 to buy a new house 3 years ago with an APR of 5.39%. The loan had to be paid with equal monthly payments at the end of each of month after the load was issued. Now that the interest rate has gone dowe, you can refinance your mortgage at 3.35% APR wi similar terms and conditions. If you can refinance the remaining balance (balance after 36 monthly payments) for the remaining term (27 years) of the loan without any additional cost, how much could you save on the total interest payment over the life of the loan ignoring any tax implication?

You borrowed a mortgage of $541000 to buy a new house 3 years ago with an APR of 5.39%. The loan had to be paid with equal monthly payments at the end of each of month after the load was issued. Now that the interest rate has gone dowe, you can refinance your mortgage at 3.35% APR wi similar terms and conditions. If you can refinance the remaining balance (balance after 36 monthly payments) for the remaining term (27 years) of the loan without any additional cost, how much could you save on the total interest payment over the life of the loan ignoring any tax implication?

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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Can you please show the step-by-step solution. please do not skip steps. Explain how you got the answer you did
Suppose that four years ago you took out a Canadian mortgage for $683,000at an APR of 3.37% with monthly payments to be amortized over 25 years. You have been paying$3363.32 per month. Today, you have the opportunity to refinance your mortgage at 1.98% for your monthly payments for the remaining 21 years. (a) Calculate the e§ective monthly interest rate and the remaining balance of the loan outstanding when 21 years remain to the loan. (b) Find the new e§ective monthly interest rate if you decide to refinance at 1.98%. How much would your new monthly payment be?
You took out a 30-year, $400,000.00 mortgage at 4.00% annual interest. How many months will it take to pay down the mortgage principal to $300,000.00 if your monthly payment is $1,909.667
Use chart.
You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $1,976 and you have made every payment on time. The original term of the mortgage was 30 years, and the mortgage is exactly four years and eight months old. You have just made your monthly payment. The mortgage interest rate is 6.037% (APR). How much do you owe on the mortgage today? The amount you owe today is $ (Round to the nearest dollar) Cara
You had a 15 year mortgage of $300,000 for five years and made payments of $3,500 per month. Now five years later, the rates remain at j2 - 4.2%, but you have now rented out your basement suite for $800 a month. If you add this to your monthly payment, how much earlier will you pay off your mortgage? Round down to the nearest month.
A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment > 2 D TRENE VAR TVUNG S 2006- E - E
A mortgage broker is offering a $279,000 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 4.5 percent APR interest rate. After the second year, the mortgage interest rate charged increases to 7.5 percent APR. What are the monthly payments in the first two years? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment What are the monthly payments after the second year? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Monthly payment
A mortgage for a condominium had a principal balance of $48,400 that had to be amortized over the remaining period of 5 years. The interest rate was fixed at 4.32% compounded semi-annually and payments were made monthly. a. Calculate the size of the payments. $0 Round up to the next whole number b. If the monthly payments were set at $998, by how much would the time period of the mortgage shorten? 0 year(s) c. If the monthly payments were set at $998, calculate the size of the final payment. Round to the nearest cent 0 months $0.00
Five years ago you took out a 30-year mortgage with an APR of 6.20% for $206,000. If you were to refinance the mortgage today for 20 years attan APR of 3.95%, how much would your new loan payment? $1,159.39 $1,261.69 $1,271.51 $1,149.82
The balance on a mortgage was $43,200 and an interest rate of 5.50% compounded semi-annually was charged for the remaining 3-year term. Monthly payments were made to settle the mortgage. a. Calculate the size of the monthly payments. SO Round up to the next whole number b. If the monthly payments were set at $1,454, how long would it take to pay off the mortgage? 0 years 0 months Express the answer in years and months, rounded to the next payment period c. If the monthly payments were set at $1,454, calculate the size of the final payment. $0.00 Round to the nearest cent

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