You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount
You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount
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
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You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at
4.9% interest for the rest. The bank will charge 3 points on the amount financed.
a) What is the amount of the down payment?
S
b) How much is the loan amount going to be?
c) What will be the amount charged for 3 points?
*1 point is 1 % of the mortgage amount
d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount)
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The mortgage refers to the loan that is provided by a bank or financial institution after keeping the legal title of the property that is being financed. The bank charges interest for the amount of loan given.
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