You own a home that was recently appraised for $330,000. The balance on your existing mortgage is $125,450. If your bank is willing to loan up to 80% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan?
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You own a home that was recently appraised for $330,000. The balance on your existing mortgage is $125,450. If your bank is willing to loan up to 80% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan?
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- You plan to use a 15 year mortgage obtained from a local bank to purchase a house worth $124,000.00. The mortgage rate offered to you is 7.75%. You will make a down payment of 20% of the purchase price. a. Calculate your monthly payments on this mortgage. List in a spreadsheet the cash flow the bank expects to receive from you. Submit the spreadsheet with your answers. b. Calculate the amount of interest and principal for the 60th payment. Show your work. c. Calculate the amount of interest and principal to be paid on the 180th payment. Show your work. d. What is the amount of interest paid over the life of this mortgage?Please solve thisYou want to buy a house for $250,000. The bank requires a down payment of 25%. What is the amount of the mortgage loan the bank will provide for you? Round to the nearest $ and use the $ symbol.
- You have negotiated a mortgage with your bank in which you will pay 3 points on a $300,000 mortgage. What is the dollar amount you will pay in points for this mortgage?You want to buy a $216,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 3.25% interest for the rest.a) What is the amount of the down payment?b) What will the amount of the mortgage?c) The bank charges 2 points on the loan. What is the amount charged for points?After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at 8 percent compounded or from a bank at 9 percent compounded . Which alternative is more attractive?
- Use the advice given in the text from most financial advisors regarding mortgages to solve the problem. 1) Suppose that your gross annual income is $108,000. 1) (a) What is the maximum amount you should spend each month on a mortgage payment? (b) What is the maximum amount you should spend each month for total credit obligations? (c) If your monthly mortgage payment is 75% of the maximum amount you can afford, what is the maximum amount you should spend each month for all other debt? A) (a) $2520; (b) $3240; (c) $1350 B) (a) $2520; (b) $3240; (c) $90 C) (a) $2520; (b) $3240; (c) $1890 D) (a) $30,240; (b) $38,880; (c) $16,200 Use the preference table to answer the question. 2) The preference table shows the results of an election among A, B, and C. 42 C B A First choice Second choice A A B Third choice B C C nothed who is the winner and (b) Is the majority criterion satisfied? Number of votes 10 2)1. Consider a home mortgage of $150,000 at a fixed APR of 4.5% for 25 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what percentage is paid toward the principal and what percentage is paid for interest. 2. Someone needs to borrow $11,000 to buy a car and the person has determined that monthly payments of $225 are affordable. The bank offers a 3-year loan at 7% APR, a 4-year loan at 7.5%, or a 5-year loan at 8% APR. Which loan best meets the person's needs? Explain. Question content area bottom Part 1 Which loan best meets the person's needs? (Round to the nearest cent as needed.) A. The first loan best meets the person's needs because the monthly payment of $enter your response here is less than the maximum budgeted amount of $225 per month. B. The second loan best meets the person's needs because the monthly payment of $enter your response here…Suppose you need to borrow $200,000 to buy a home, and you are deciding between a 15 year mortgage and a 30 year mortgage. Research a bank offering 15 year and 30 year mortgage loans and find the interest rates on those loans. Use the techniques you learned in this Module to do the following: 1. Calculate the monthly payment for a 15-year mortgage and for a 30-year mortgage. 2. Find the total amount of interest you will pay on the 15 year mortgage and on the 30 year mortgage. 3. Describe some of the factors (financial and non-financial) that can influence whether to obtain a shorter term mortgage or a longer term mortgage. 4. Which mortgage would you take, the 15 year or the 30 year? Explain your decision.
- Your parents shop around and a different bank is willing to lend them a $750,000 30-year mortgage with payments of $4,865 per month. What is the implied APR of this loan?The annual income of a borrower is $74,000.00. What is the maximum dollar amount he can borrow to purchase a house if the bank requires that the borrower’s debt to income ratio not to exceed 36% of his gross monthly income. The borrower is making a monthly payment of $250.00 for an auto loan and the current mortgage rate is 6.97%. The borrower can afford a total of 20% for the down payment and a closing cost of $6,765.00.You are considering a $75,000, 30-year mortgage to purchase a new home. The bank at which you have done business for many years offers a rate of 7.54% compounded monthly. A competitor is offering 7.35% compounded monthly. Would it be worthwhile for you to switch banks? Explain using mathematical terms/words, formula needed, amount in savings if any, payment, interest, etc. to provide reasoning.
