Question

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan with monthly payments. The initial rate on this loan is 4% and it resets to LIBOR plus a margin of 150bps. Suppose the remaining balance after five years of payments is $291,861 and the LIBOR rate at the first reset if 4%. What will be Lilian's new monthly payment during 6th year of the loan? Express your answer as a number rounded to the nearest cent (e.g. if you find that the payment is $600.0697, then write 600.07).

Answer #1

In an installment loan, a lender loans a borrower a principal amount P, on which the borrower will pay a yearly interest rate of i (as a fraction, e.g. a rate of 6% would correspond to i=0.06) for n years. The borrower pays a fixed amount M to the lender q times per year. At the end of the n years, the last payment by the borrower pays off the loan.

The amount of the fixed payment is determined by

M = Pi/[q(1-[1+(i/q)]^{-nq})].

BALANCE SOLUTION IS CONTINUED IN THE IMAGE.

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan
with monthly payments. The initial rate on this loan is 2% and it
resets to LIBOR plus a margin of 150bps. Suppose the remaining
balance after five years of payments is $197,000 and the LIBOR rate
at the first reset if 4%. What will be Lilian's new monthly payment
during 6th year of the loan? Express your answer as a number
rounded to the nearest cent (e.g....

Five years ago Lilian took out a 30 year 5/1 Hybrid ARM loan
with monthly payments. The initial rate on this loan is 2% and it
resets to LIBOR plus a margin of 150bps. Suppose the remaining
balance after five years of payments is $210,107 and the LIBOR rate
at the first reset if 4%. What will be Lilian's new monthly payment
during 6th year of the loan? Express your answer as a number
rounded to the nearest cent (e.g....

Five years ago you took out a 5/1 adjustable rate mortgage and
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a. Now that you have made 60 payments, what is the remaining
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b. If the interest rate increases by 1.2%, to 5.3% APR,
compounded monthly, what will your new payments be?

10. Five years ago you took out a 5/1 adjustable rate mortgage
and the five-year fixed rate period has just expired. The loan was
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Exactly 18 years ago, you took out a $550,000 30-year mortgage
with monthly payments and
an APR of 10% compounded monthly. You have just made your 216th
payment. What is the
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You took out your home mortgage five years ago, and are
currently considering refinancing into a loan at a lower rate and
for a shorter term. Your original loan was for 30 years, at 6%
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Again, the payments will be monthly. What will your new payment be
if you take on this new loan? SHOW...

An ARM is made for $50,000 for 30 years with the following
terms: Initial interest rate = 1 percent Index = 1-year Treasuries
Payments reset each year Margin = 200 basis points Interest rate
cap = none Payment cap = none Discount points = 1 point Negative
amortization is not allowed Based on estimated forward rates, the
1-year Treasury yields to which the ARM is tied is forecasted as
follows: Beginning of year (BOY) 2 = one percent (1%); (BOY)...

A borrower takes out a 30-year adjustable rate mortgage loan for
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What would be the Year 2 monthly payment be?
Please show how to solve using a financial calculator.

A borrower takes out a 25-year adjustable rate mortgage loan for
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Group of answer choices
A) $3,369.84
B) $3,407.02
C) none of the answers is correct
D) $3,235.05...

A loan is repaid with monthly payments for five years, the
payments beginning exactly one year after the loan is made. The
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rate on the loan is a nominal rate of 6% convertible monthly find
the amount of principal in the 42nd paymen

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