You got a very high paying job at career fair and plan on buying a very nice home in your new city. You will need a loan to purchase the house and the loan will need to be for $1,200,000, which is above the conforming loan limit and therefore is considered a Jumbo Loan. The term will be for 30 years at a nominal interest rate of 3.75%, compounded monthly. The loan requires paying 1.2 Points to acquire the loan. Calculate the following: Part A: Calculate the Jumbo Loan payment. Part B: Calculate the Annual Percentage Rate on your Jumbo Loan, assuming the Points are the only fees associated with the loan. Part C: After 12 months, how much of the loan principal have you paid off?

You got a very high paying job at career fair and plan on buying a very nice home in your new city. You will need a loan to purchase the house and the loan will need to be for $1,200,000, which is above the conforming loan limit and therefore is considered a Jumbo Loan. The term will be for 30 years at a nominal interest rate of 3.75%, compounded monthly. The loan requires paying 1.2 Points to acquire the loan. Calculate the following: Part A: Calculate the Jumbo Loan payment. Part B: Calculate the Annual Percentage Rate on your Jumbo Loan, assuming the Points are the only fees associated with the loan. Part C: After 12 months, how much of the loan principal have you paid off?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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