You have found your dream house. The selling price is 120,000. You will put $20,000 down and obtain a 25-year fixed-rate mortgage at 8.75% (APR compounded semiannually) for the rest. You plan to prepay the loan by making an additional payment each month along with your regular payment. How much extra must you pay each month if you wish to pay off the load in 20 years? (Assume there is no early payment penalty).

Q: You are purchasing a house and you are considering getting a fixed-rate mortgage (FRM) for $750,000.…

A: Required monthly payments for the mortgage is calculated using excel PMT function Required monthly…

Q: pose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 y PR of…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: You take out a 30-year mortgage (360 months) with a face value of $200,000 and a stated annual rate…

A: When you take out a mortgage you have to make periodic constant payments towards that mortgage.…

Q: You purchase a home for $434,000 by making a down payment of 15% and financing the remaining amount…

A: First we need to use loan amortgage formula below to calculate monthly payment.  where P=Loann…

Q: Suppose you take out a 25-year $100,000 mortgage with an APR of 6%. You make payments for 3 years…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Suppose you take out a 45-year $250,000 mortgage with an APR of 6%. You make payments for 3 years…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: You are considering the purchase of a $140,000 home and making a 20% down payment. You can obtain a…

A: Data given: Purchase price of home=$140,000 Down payment=20% n=15 year r=6.50% Discount point=2%…

Q: You want to take out a $179,000 mortgage (home loan). The interest rate on the loan is 4.1 %, and…

A: After making payments for 15 years, you will still owe approximately $116,143 on your mortgage.…

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: Mortgage refers to borrowing an amount for the purchase of an asset and in return borrowed amount is…

Q: 3. You are planning to get a home loan which will pay the cost for your home purchase of 6,000,000…

A: Given                              Loan amount = 6.000.000  ,  Interest rate = 4% compounded monthly…

Q: You are considering buying a house. The home is currently listed for $750,000. Terms for the loan…

A: To calculate the monthly mortgage payment, use the formula for a fixed-rate mortgage:Where:M =…

Q: have an outstanding student loan with required payments of 550 per month for the next four years.…

A:

Q: You are considering getting a mortgage for $260,000 that requires equal payments at the end of each…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You can save a significant amount of mortgage interest paid if you make one additional principal and…

A: The prinicipal is $155,000.The annual rate of interest is 5%.The period is 19 years.

Q: Midwest Bank is offering a 25-year mortgage with an APR of 6% based on monthly compounding. With…

A: A mortgage may be a sort of credit utilized to buy genuine bequest, ordinarily a domestic. It…

Q: Suppose you found your dream house and you intend to buy it with a $197,705, 16-year, 5% APR…

A: Loan Balance at the End of Year 2Here's how to calculate the loan balance at the end of the year 2…

Q: You can save a significant amount of mortgage interest paid if you make one additional principal and…

A: One kind of loan is a mortgage. It is specifically a loan taken out to buy real estate, such a house…

Q: You can save a significant amount of mortgage interest paid if you make one additional principal and…

A: The monthly payment is the payment that has to be paid every month until the loan is amortized which…

Q: You purchase a home for $438,000 by making a down payment of 15% and financing the remaining amount…

A: Monthly payment refers to the amount that is being paid every month either in the beginning or end…

Q: pose that after the 6-month grace period after you graduate college, you have $63,0 dent loan debt.…

A: As there is more compounding than there is going to be more effective interest rate and more is the…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: mortgage value = n = 30 x 12 = 360

Q: You wish to purchase a home for $500,000. You will make payments of $30,000 at the end of every year…

A: The present value of an annuity is the value today of a series of equal payments that are made at…

Q: When applying for a mortgage, find one that allows you to contribute more money than the required…

A: given, loan amount =$152,700 no of year =30 interest rate =3.89%

Q: You are buying a house and the mortgage company offers to let you pay a "point" (1% of the total…

A: Mortgage amount = $400,000 Time period = 30 years Interest rate = 6.50%  Additional Payment = 1% of…

Q: Suppose you take out a 30 year mortgage for $ 150000 at 4% interest. The monthly payments on this…

A: Here, Mortgage Amount is $150,000 Time Period of Mortgage is 30 years Interest Rate is 4% Monthly…

Q: You are ready to buy a house and you have $35,000 for a down payment and closing costs. Closing…

A: Excel formula.

Q: You buy a house for $230000, and take out a 30-year mortgage at 6% interest. For simplicity, assume…

A: A) Annual mortgage payment is to be calculated as given below: The result of the above table is:…

Q: You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year…

A: Mortgage period = 30 yearsPurchase price = $2,700,000Mortgage amount = 80% of purchase priceMonthly…

Q: You need a 30-year, fixed-rate mortgage to buy a new home for $210,000. Your mortgage bank will lend…

A: Present value of annuity is computed as follows:-PV= A*wherePV= Present value of annuityA= periodic…

Q: You are buying your first car for $20,000 and are paying $2,000 as a down payment. You have…

A: the monthly loan amount will be                                    = p*[ r(1+r)n/(1+r)n-1]…

Q: You purchase a home and secure a 30 year equal payment loan for $200,000 at a interest rate of 5.25%…

A: The number of months to stay will be around 6 months.

Q: You are buying a house priced at $654,125. You plan to pay 20% of the price for down payment and…

A: A mortgage loan is a loan provided by a bank or lending institution to a borrower for the purpose of…

Q: A borrower takes out a 30-year loan for a house worth $250,000. If the annual interest rate is 6%.…

A: Here this is a case of home loan. It should be noted that there are monthly payments towards a home…

Q: Annuity payments) To buy a new house, you must borrow $150,000. To do this, you take out a 150,000,…

A: Loan amortization refers to the systematic repayment of a loan over a specific period of time. It…

Q: You can save a significant amount of mortgage interest paid if you make one additional principal and…

A: One kind of loan is a mortgage. It is specifically a loan taken out to buy real estate, such as a…

Q: To buy an $180,000 condominium, you put down $30,000 and take out a mortgage for $150,000 at an APR…

A: The calculation is:

Q: Suppose you borrow $1million to purchase a house. The bank offers you the fixed borrowing rate 4%…

A: Repayment of loan is made in installment of fixed amount which include portion of principal as well…

Q: you need $8,000 four years from now for a down payment on your future house. How much money must you…

A: The formula for compound interest: Final amount (A)=Initial principal balance (P)×1+ratetime

Q: How much will the monthly mortgage payment be if you purchase a new condominium for $150 000 with an…

A: Mortgage/ Borrowings:  Borrowings are the loans taken from banks or non-banking financial…