You currently have a four-year-old mortgage outstanding on your house. You make monthly payments of $1,900. You have just made a payment. The mortgage has 26 years to go (i.e., it had an original term of 30 years). Show the timeline from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline from your perspective. (Select the best choice below.) A. Month 1 2 3 4 360 Cash Flow $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 В. Month 1 2 4 312 Cash Flow - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 O C. Month 1 2 4 360 Cash Flow - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 O D. Month 1 2 4 312 Cash Flow $1,900 $1,900 $1,900 $1,900 $1,900 1. 1.

You currently have a four-year-old mortgage outstanding on your house. You make monthly payments of $1,900. You have just made a payment. The mortgage has 26 years to go (i.e., it had an original term of 30 years). Show the timeline from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline from your perspective. (Select the best choice below.) A. Month 1 2 3 4 360 Cash Flow $1,900 $1,900 $1,900 $1,900 $1,900 $1,900 В. Month 1 2 4 312 Cash Flow - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 O C. Month 1 2 4 360 Cash Flow - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 - $1,900 O D. Month 1 2 4 312 Cash Flow $1,900 $1,900 $1,900 $1,900 $1,900 1. 1.

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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You have decided to refinance your mortgage. You plan to borrow whatever is outstanding on your current mortgage. The current monthly payment is $2,356 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 7.500% (APR). How much do you owe on the mortgage today? (Note: Be careful not to round any intermediate steps less than six decimal places.) The amount you owe today is $ (Round to the nearest dollar.)
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%: $
You want to buy a car and therefore you borrowed $10,000 from a bank today for 6 years. The nominal interest rate that the bank charges is 7.2%. If you start making equal monthly payments beginning today then what will be your approximate monthly installment? Group of answer choices $170.43 $154.31 $160.31 $171.45
Question # 3: David is buying a house for $256,000. To obtain the mortgage, David is required to make a 20% down payment. David obtains a 30-year mortgage with an interest rate of 6.15%. a.) Determine the amount of the required down payment. b.) Determine the amount of the mortgage (loan amount). c.) Determine the monthly payment. d.) Determine the total amount of interest paid on this mortgage.
You have just purchased a home and taken out a $420,000 mortgage. The mortgage has a 30-year term with monthly payments and an APR of 5,68%. a. How much will you pay in interest, and how much will you pay in principal, during the first year? b. How much will you pay in interest, and how much will you pay in principal, during the 20th year (i.e., between 19 and 20 years from now)?
aa.2 Joe purchases a $100,000 home. Mortgage payments are to be made monthly for 30 years, with the first payment to be made one month from now. The annual effective rate of interest is 5%. After 10 years, the amount of each monthly payment is increased by $325.40 in order to repay the mortgage more quickly. Calculate the amount of interest paid over the duration of the loan.
Question 1 A family has a 30-year $880, 000 mortgage at 8% compounded monthly. (1) Find the monthly payment and the total interest paid (2) After 10 years, suppose the family decides to add an extra $150 to its mortgage payment each month. How long will it take the family to pay off the remain mortgage? (3) How much interest will the family save?
Baghiben
1) The amount of down payment one makes on a home directly affects the size of the monthly payments a. True b. False 2) A monthly payment of $ 850 on a 30 year $ 80,000 mortgage results in a total cost of interest of $ 306,000. a. True b. False 3) What are the points on a mortgage?
QUESTIONS 1,2,3 ARE CONNECTED. I SOLVED QUESTIONS 1 and 2 and need help solving QUESTION 3 ONLY 1. A bank customer obtains a $150,000 mortgage with a term of 15 years and a nominal interest rate of 4.20%. The monthly debt service/payment for the mortgage : Answer - $1,124.63 2) If the homeowner makes the minimum monthly required payments on the mortgage, what is the balance on the mortgage after 5 years – i.e. after the 60th payment is made: Answer - $110,043.38 3) Assume the homeowner has made the minimum required monthly payments on the mortgage and 5 years have passed. If the homeowner’s income has increased and he/she decides to increase the monthly payments to $1500, how many months and years will it take to retire the mortgage? Months Years? *PLEASE SOLVE #3 USING EXCEL ONLY AND SHOW THE FUNCTIONS/FORMULAS USED*
Mortgage, part 1 (The Loan)5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment? How much of the purchase price did you finance with the loan? What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula. How much did you pay to the lender (total) over the first 5 years? How much of what you paid to the lender in the first 5 years was interest? If you paid this loan for all 30 years, how much interest would you pay?
Sangita

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