The number of years required to pay off the complete mortgage. Introduction: A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

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Answer 1

Question

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

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Students have asked these similar questions

Your friend tells you he has a very simple trick for taking one-third off the time it takes to repay your mortgage: Use your Christmas bonus to make an extra payment on January 1 of each year ( that is, pay your monthly payment due on that day twice). If you take out your mortgage on July 1, so your first monthly payment is due August 1, and you make an extra payment every January 1, how long (in years) will it take to pay off he mortgage? Assume that the mortgage has an original term of 30 years and an APR of 10.2%. (Hint: The original balance does not matter in this problem, so you can pick any number you want. In this case we will use $100,000 as the principal balance.) Round to three decimal places.

You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest. The same day you close on the mortgage you receive a $25,000 gift from your parents to be applied to the mortgage principal. What amount of time will now be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment? (Assume any residual partial payment amount is added to the last payment.)

You borrow $333,000 to purchase a home. Your mortgage requires monthly payments over the next 23 years, with the first payment due one month from today. The annualized interest rate for the loan is4.2%. What will be your remaining loan balance immediately following payment #28? Hint: you do not need to create an amortization schedule to answer this question. Do not round intermediate steps. Enter your answer as a positive number, and round to the nearest penny.

Answer 2

Question

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

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Answer 3

Question

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

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Answer 4

Question

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

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Answer 5

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

Answer 6

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

Answer 7

Chapter 5, Problem 21P

a)

Summary Introduction

To determine: The number of years required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

Answer 8

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

Answer 9

b)

Summary Introduction

To determine: The number of months required to pay off the complete mortgage.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually own the property.

Answer 10

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

Answer 11

c)

Summary Introduction

To determine: Does the given strategy vary with rate of interest on loan.

Introduction:

A mortgage may be a certificate of debt, secured by the collateral of the given property the receiver is obligated to pay back with a planned set of payments while not paying the whole price of acquisition up front. The receiver repays the loan and interest, till he eventually owns the property.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 5.1 - Prob. 1CC Ch. 5.1 - Prob. 2CC Ch. 5.2 - How can you compute the outstanding balance on a...Ch. 5.2 - What is an amortizing loan?Ch. 5.3 - What is the difference between a nominal and real...Ch. 5.3 - How do investors expectations of future short-term...Ch. 5.4 - Prob. 1CC Ch. 5.4 - How do taxes affect the interest earned on an...Ch. 5.5 - What is the opportunity cost of capital?Ch. 5.5 - Why do different interest rates exist, even in a...

Solution Summary: The author explains how Person X restricts the time for repayment of mortgage by one-third.

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