You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of 10% of the purchase priceand then borrow the rest.What is the dollar value of your down payment?$ 19,000How much money will you need to borrow?$ 171,000You have the option to take out a 30-year mortgage that has an APR of 4% or a 20-year mortgage that has an APR of 3.25%.When answering the following questions, remember to base your mortgage payments on the amount you need to borrow ratherthan the entire purchase price.30-year mortgageIf you take out a 30-year mortgage with an APR of 4%, what will your monthly payment be? (Round your answer to the nearestcent.)$ 816.38If you make the payment you just calculated every month for 30 years, how much will you pay altogether?$What dollar amount of your total 30-year mortgage payments go to interest?Hint: The dollar amount of your interest is the difference between your total payments and the amount you borrowed.$What percentage of your total 30-year mortgage payments go to interest? (Round your percentage to one decimal place.)X %20-year mortgageIf you take out a 20-year mortgage with an APR of 3.25%, what will your monthly payment be? (Round your answer to thenearest cent.)$ 969.90If you make the payment you just calculated every month for 20 years, how much will you pay altogether?What dollar amount of your total 20-year mortgage payments go to interest?Hint: The dollar amount of your interest is the difference between your total payments and the amount you borrowed.$What percentage of your total 20-year mortgage payments go to interest? (Round your percentage to one decimal place.)30-year vs 20-year mortgageHow much money will you save altogether by taking out a 20-year mortgage rather than a 30-year mortgage?$

Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…

You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of 10% of the purchase price and then borrow the rest. What is the dollar value of your down payment? $ 19,000 How much money will you need to borrow? $ 171,000 You have the option to take out a 30-year mortgage that has an APR of 4% or a 20-year mortgage that has an APR of 3.25%. When answering the following questions, remember to base your mortgage payments on the amount you need to borrow rather than the entire purchase price. 30-year mortgage If you take out a 30-year mortgage with an APR of 4%, what will your monthly payment be? (Round your answer to the nearest cent.) $ 816.38

You want to buy a house that has a purchase price of $190,000. You plan to make a down payment of 10% of the purchase price and then borrow the rest. What is the dollar value of your down payment? $ 19,000 How much money will you need to borrow? $ 171,000 You have the option to take out a 30-year mortgage that has an APR of 4% or a 20-year mortgage that has an APR of 3.25%. When answering the following questions, remember to base your mortgage payments on the amount you need to borrow rather than the entire purchase price. 30-year mortgage If you take out a 30-year mortgage with an APR of 4%, what will your monthly payment be? (Round your answer to the nearest cent.) $ 816.38

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

Problem 1PS

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You plan to purchase a house for $295000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Your bank offers you the following two options for payment. Option 1: Mortgage rate of 5.35 percent and 1 point. Option 2: Mortgage rate of 5.25 percent and 2 points. Which option should you choose?
You plan to purchase a house for $250,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price and monthly payments. You will not pay off the mortgage early. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 3.75 percent and zero points. Option 2: Mortgage rate of 3.50 percent and 2 points. Which of the following is correct? Round your calculations/answers to two decimals. I. In exchange for $4,000 up front, Option 2 reduces your monthly mortgage payments by $28.14. II. The present value of the monthly savings is less than the points paid up front. III. Option 1 is the better choice. Formulas and Equations M = where P is principal, M is periodic payment, y interest rate, PVIFAny% = In period j, principal repayment is AMj = M Interest payment is is Ij = M[ ]=M - AMj Group of answer choices I only II only I and II only II and III only I, II, and III
Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You have arranged to finance the remainder with a 30-year, monthly payment, amortized mortgage at a 6.40% nominal interest rate, with the first payment due in one month. What will your monthly payments be? Group of answer choices $831.93 $857.64 $753.30 $714.27 $794.39
Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 4.64% interest. Suppose also that you can put down 30%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)$
You found your dream house. It will cost you $300000 and you will put down $45000 as a down payment. For the rest you get a 30-year 4.0% mortgage. What will be your monthly mortgage payment in S (assume no early repayment)?
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 5.84% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)$ What is the total amount paid for principal and interest? (Round your answer to the nearest cent.)$ What is the amount saved if this home is financed for 15 years instead of for 30 years? (Round your answer to the nearest cent.)
You want to buy a $194,000 home. You plan to pay 20% as a down payment, and take out a 3.3% APR loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the length of the loan is 10 years? c) What will your monthly payments be if the length of the loan is 20 years? $ d) Over the course of the entire loan, how much more do you end up paying with the longer loan? (Hint: take the difference of the total amounts paid) $4 %24 %24 %24
Let’s assume that you plan to purchase a house which is selling for $350,000 today. You will make a monthly payment for the next 30 years, with an annual interest rate of 3%. What will be the amount of your monthly mortgage (i.e., home loan) payment? answer choices $1,890.37 $1,400.01 $1,475.61 $1,228.14
Suppose you want to purchase a home for $475,000 with a 30-year mortgage at 4.34% interest. Suppose also that you can put down 25%. What are the monthly payments? (Round your answer to the nearest cent.)
Answer the following question using a spreadsheet and the material in the appendix. You would like to buy a house. Assume that given your income, you can afford to pay $12,000 a year to a lender for the next 30 years. If the interest rate is 7% how much can you borrow today based on your ability to pay? What about if the interest rate is 3%? Maximum mortgage at 7%: $ Maximum mortgage at 3%: $
Suppose you want to purchase a house. Your take-home pay is $4270 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 1/4 of your take-home pay on a house payment. You have $18,500 saved for a down payment and you can get an APR from your bank of 5.7%, compounded monthly. What is the total cost of a house you could afford with a 3030-year mortgage? Round your answer to the nearest cent, if necessary.
Your credit score is in the range of 720-739 and you want to buy a house in Davis (CA). You have a 20% down payment to put on a house that has a market value of $450,000. If APR = 4.173% for your 30-year fixed mortgage, accordingly calculate your annual payment.

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