RES 431 Lecture 18: 18_Mortgage Calculations and Decisions
10 May 2017
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180 months: consider a ,000 mortgage loan with an annual interest rate of 8%. The loan term is 7 years, but monthly payments will be based on a 30-year amortization schedule. What will be the balloon payment at the end of the loan term: a mortgage banker is originating a level-payment mortgage with the following terms: Find apr, ly, ebc as well as ly and ebc if prepayment in 5 years. ,000: a homeowner is attempting to decide between a 15-year mortgage loan at 5. 5 percent and a 30-year loan at 5. 90 percent. One-year treasury rate at end of year 1: One-year treasury rate at end of year 2: Given these assumptions, calculate the following: loan balance end of year 1, year 2 contract rate, year 2 monthly payment, loan balance end of year 2, year 3 contract rate, year 3 payment.
