1. Your bank says that they will loan you money based on a 90% loan-to-value ratio. The seller has accepted your offer for $150,000 but the appraiser arrived at an appraised value of $145,000. Calculate the amount of your loan and the amount of your down payment.
2. You agreed to pay $190,000 for your new home and the bank agrees to lend you $152,000; they will be charging you 2 points for the loan. Calculate the dollar amount of the points that you have to pay the bank.
3. Your lender has agreed to loan you $75,000 on the following terms: - Annual payments consisting of "interest only" (no contributions toward principal, until pay-off at the very end) - 8% annual interest rate - 5 year term a. Calculate the first annual payment b. Calculate the very last (final) payment
4. What is a "Package Loan"? How is it different than a "Blanket Loan"?
5. Describe a "Due on Sale" clause? What is another name for it?
6. In your reading about the APR, which of the following are included in the calculation of the APR? (When you are answering this say "yes" if it is covered and "no" if not covered and also refer to the letter (ie, the answer to "a" is: ___) . interest due on the loan a. credit life insurance (required by lender) b. private mortgage insurance (required by lender) c. loan origination fees d. borrower's attorney fees
1. Your bank says that they will loan you money based on a 90% loan-to-value ratio. The seller has accepted your offer for $150,000 but the appraiser arrived at an appraised value of $145,000. Calculate the amount of your loan and the amount of your down payment.
2. You agreed to pay $190,000 for your new home and the bank agrees to lend you $152,000; they will be charging you 2 points for the loan. Calculate the dollar amount of the points that you have to pay the bank.
3. Your lender has agreed to loan you $75,000 on the following terms: - Annual payments consisting of "interest only" (no contributions toward principal, until pay-off at the very end) - 8% annual interest rate - 5 year term a. Calculate the first annual payment b. Calculate the very last (final) payment
4. What is a "Package Loan"? How is it different than a "Blanket Loan"?
5. Describe a "Due on Sale" clause? What is another name for it?
6. In your reading about the APR, which of the following are included in the calculation of the APR? (When you are answering this say "yes" if it is covered and "no" if not covered and also refer to the letter (ie, the answer to "a" is: ___) . interest due on the loan a. credit life insurance (required by lender) b. private mortgage insurance (required by lender) c. loan origination fees d. borrower's attorney fees
Related questions
1. On the day you entered college, you borrowed $30,000 from your local bank. The terms of the loan include an interest rate of 4.75 percent. The terms stipulate that the principal is due in full one year after you graduate. Interest is to be paid annually at the end of each year. Assume that you complete college in four years. How much total interest will you pay on this loan assuming you paid as agreed? (Hint: This is simple interest, not an amortized loan)
| $7,267 |
| $7,400 |
| $7,125 |
| $1,500 |
| $1,425 |
2. Mr. Miser loans money at an annual percentage rate of 18 percent. Interest is compounded daily. What is the effective rate Mr. Miser is charging on his loans?
3. You just acquired a 30-year mortgage in the amount of $179,500 at 4.75 percent interest, compounded monthly. Payments will be equal over the life of the loan with the first payment due one month after the date of the loan. How much of the first payment will be interest?
4.The Great Giant Corp. has a management contract with its newly hired president. The contract requires a lump sum payment of $24,500,000 be paid to the president upon the completion of her first 6 years of service. The company wants to set aside an equal amount of funds each year to cover this anticipated cash outflow. The company can earn 5 percent on these funds. How much must the company set aside each year for this purpose?
