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 d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here
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 d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here
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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Transcribed Image Text: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
d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount)
Hint: click here
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Down Payment is the payment we make initially at the start of purchase of a home or a vehicle.
Monthly Payment is the payment which includes both Interest and Principal and will be used to reduce the mortgage amount outstanding balance
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