EP FINANCIAL MARKET+INSTITUTION-LRNSMRT
7th Edition
ISBN: 9781264326006
Author: SAUNDERS
Publisher: MCG COURSE
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Chapter 24, Problem 3P
a)
Summary Introduction
To determine: Whether the loan should purchase when its duration is 7 years.
b)
Summary Introduction
To compute: The asset duration to buy loan for increasing its average duration to five years.
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4. On August 20, Mr. and Mrs. Cleaver decided to buy a property from Mr. and Mrs. Ward for
$105,000. On August 30, Mr. and Mrs. Cleaver obtained a loan commitment from OKAY
National Bank for an $84,000 conventional loan at 5 percent for 30 years. The lender informs
Mr. and Mrs. Cleaver that a $2,100 loan origination fee will be required to obtain the loan. The
loan closing is to take place September 22. In addition, escrow accounts will be required for all
prorated property taxes and hazard insurance; however, no mortgage insurance is necessary. The
buyer will also pay a full year's premium for hazard insurance to Rock of Gibraltar Insurance
Company. A breakdown of expected settlement costs, provided by OKAY National Bank when
Mr. and Mrs. Cleaver inspect the uniform settlement statement as required under RESPA on
September 21, is as follows:
I. Transactions between buyer-borrower and third parties:
a. Recording fees--mortgage
b. Real estate transfer tax
c. Recording fees/document…
Chapter 24 Solutions
EP FINANCIAL MARKET+INSTITUTION-LRNSMRT
Ch. 24 - Prob. 1DYUCh. 24 - Prob. 2DYUCh. 24 - Prob. 3DYUCh. 24 - Prob. 4DYUCh. 24 - Prob. 5DYUCh. 24 - Prob. 6DYUCh. 24 - Prob. 7DYUCh. 24 - Prob. 8DYUCh. 24 - Prob. 9DYUCh. 24 - Prob. 10DYU
Ch. 24 - Prob. 1QCh. 24 - Prob. 2QCh. 24 - Prob. 3QCh. 24 - Prob. 4QCh. 24 - Prob. 5QCh. 24 - Prob. 6QCh. 24 - Prob. 7QCh. 24 - Prob. 8QCh. 24 - Prob. 9QCh. 24 - Prob. 10QCh. 24 - Prob. 11QCh. 24 - Prob. 12QCh. 24 - Prob. 13QCh. 24 - Prob. 14QCh. 24 - Prob. 15QCh. 24 - Prob. 16QCh. 24 - Prob. 17QCh. 24 - Prob. 1PCh. 24 - Prob. 2PCh. 24 - Prob. 3PCh. 24 - Prob. 4PCh. 24 - Prob. 7PCh. 24 - Prob. 8PCh. 24 - Prob. 9PCh. 24 - Prob. 10P
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