Log in
Finance
2
answers
0
watching
86
views

You purchase a house for $200,000 by getting a mortgage for $160,000 and paying a $40,000 down payment (20%). You can get a 30 year mortgage with a 3.3% interest rate.

A. What would be your monthly payment? ______________

B. What would be the loan balance half way through in 15 years? __________________

Please show all work, thanks!

Watch
2
answers
0
watching
86
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Bunny Greenfelder
Bunny GreenfelderLv2
28 Sep 2019
Already have an account? Log in
Share

Related questions

Please show your work how you calculate them. so I can understand how you did them

Thanks

Q. 1

Part 1

For a $400,000 mortgage at 6% annually, accrued monthly, fully amortized

a. What is the monthly payment____________ and what would be the total interest if paid in 15 years? _______________

b. What is the monthly payment____________ and what would be the total interest if paid in 30 years? _______________

If I have a mortgage of $300,000 payable in 360 payments at 5.25% APR

What is my monthly payment? _______________

What is my balance after 2 years? _______________

What would my payment be if I had a balloon payment of $100,000? _______________

If I can afford $1400 per month, and loans were available at 3.25% for 30years

What amount of loan would be available to me? ­_______________

What is my balance in 5 years? _______________

What if I could increase my monthly payment to $1800, what amount could I have? _______________

How long will it take to pay off my $425,000 mortgage @4.5%

If I pay $2500 per month? _______________

If I pay $3000 per month? _______________

For a loan of $385,000, amortized for 25 years payable at $1500/mo

What is the interest rate? _______________

What is the balance after 3 years of paying? _______________

Part 2

I have a loan for $339,000 amortized for 20 years payable at $1500/mo at 4.15%

What is the balloon payment at the end of the term? _______________

What would my payment be if it were fully amortized? _______________

What would the monthly payment be on an interest only loan of $750,000

@7.61% with a term of 5 years? _______________

@6.33% with a term of 3 years? _______________

If I made no payments, what amount would the principle be after one year @6.25% _______________

Paying $1500/mo for 15 years @ 4.85 with a balloon payment of $25,000 will get you what original loan amount? _______________, what amount if no balloon payment? ________________

You could rent an apartment for $850/mo, but decided to buy instead and will live there for 4 years while attending VIU

a. What size mortgage would this same rent pay for, 0% down, using a 30 year amortization @4.5% with a 4 year term? ___________

b. With a 5% down payment, what would your maximum purchase price be? _______________

c. What is the loan balance in 4 years? _______________

d. If property values on purchase in #b above, rose 4.6% per year, what is the value in 4 years? _______________

e. How much equity did you gain? ­_______________

f. Assuming you paid 5% down payment, had $15,000 in selling/buying costs, what is your % return on equity invested? _______________

Scenario: Mortgage Loan = $150,000 Loan length = 30 years Interest rate = 6% annually the monthly payment would be $899 Question: If you decide to amortize the loan over 15 year, what will be your monthly payment? and please explain how to do amortize mortgage as my book does a poor job of explaining it.

Buying a House

2) After you've been working five years, you decide to buy a house. As a rule of thumb, your house payments should not exceed 25% of your gross pay. Based on your annual salary during your sixth year on the job $42, 543, what is the maximum amount you could afford in the house payments per year?

3) Calculate the maximum house payment you could afford per month?

4) Assume you will qualify for an 8%, 30-year conventional mortgage. How much could you borrow based on the maximum monthly payment you can afford? (8% compounded monthly)

5) Lenders often expect that you have 20% of the value of the house as a down payment. Assume that you will be able to make a 20% down payment. What is a total cost of the house you could afford? The total cost is equal to the mortgage plus the down payment. (HINT: Use algebra. You want to calculate 20% of the value of the house, not 20% of the amount you are financing.)

6)What is the amount you would pay for for this house over the 30-year mortgage with monthly payments? Don't forget to include the down paument. (In the words, how much total cash will you be paying for this house - not taking into account the time value of money?)

7) How large would your monthly payments be if you could qualify for a 2-year mortgage at 8% compounded monthly (for the same amount you could borrow based on your calculations in question 4)?

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in