Question

What is the loan balance after 5 years on a conventional fixed-rate 6.5% mortgage with the original maturity of 30 years and initial balance of $100,000? Assume only required monthly payments have been made.

- A. $99,543
- B. $93,735
- C. $93,611
- D. $83,581
- E. $83,333

Answer #1

Given about a conventional fixed rate mortgage loan,

Interest rate r = 6.5%

Years of loan t = 30

Initial balance PV = $100000

So, Monthly payment on the loan,

PMT = PV*(r/n)/(1 - (1+r/n)^(-n*t)) = 100000*(0.065/12)/(1 - (1+0.065/12)^(-12*30)) = $632.07

After 5 years, loan period remaining is 25 years

So, loan balance after 5 years is present value of monthly payments remaining:

So, loan balance PV = PMT*(1 - (1+r)^(-t*n))/(r/n) = 632.07*(1 - (1+0.065/12)^(-12*25))/(0.065/12) = $93611

So, Option C is correct.

Suppose that you are considering a conventional, fixed-rate
30-year mortgage loan for $100,000. The lender quotes an APR of
7.46%, compounded monthly; mortgage payments would be monthly,
beginning one month after the closing on your home purchase. After
19 years of payments, what is the balance outstanding on your
loan?

Suppose that you are considering a conventional, fixed-rate
30-year mortgage loan for $100,000. The lender quotes an APR of
3.26%, compounded monthly; mortgage payments would be monthly,
beginning one month after the closing on your home purchase.
After 20 years of payments, what is the balance outstanding on
your loan?
Do not round at intermediate steps in your calculation. Round
your answer to the nearest penny. Do not type the $ symbol

Suppose that you are considering a conventional, fixed-rate 30-year
mortgage loan for $100,000. The lender quotes an APR of 6.13%,
compounded monthly; mortgage payments would be monthly, beginning
one month after the closing on your home purchase. After 13 years
of payments, what is the balance outstanding on your loan? Do not
round at intermediate steps in your calculation. Round your answer
to the nearest penny. Do not type the $ symbol.

What is the principal portion of the required monthly payment on
a 30-year, 6.5% rate, $100,000 conventional fixed-rate mortgage
that has monthly mortgage payments of $632.07?
A. $871
B. $632
C. $542
D. $90
E. $0

Ann gets a fully amortizing 30-year fixed rate mortgage with
monthly payments. The initial balance is $1,000,000. The interest
rate is 3.50%, compounded monthly. What will be Ann’s loan balance
after her 240th payment (if Ann makes exactly the
required monthly payment for 20 years)?
Using your answer from abovr, what fraction of the 241st payment
will go to principal (in percent)?

The balance of a mortgage loan after 60 months is $138,959. If
the interest rate is 8.50% and the initial
amortisation period is spread over 25 years, what was the
original amount of the mortgage loan?

Ann gets a fully amortizing 30-year fixed rate mortgage with
monthly payments. The initial balance is $1,000,000. The interest
rate is 3.50%, compounded monthly. What will be Ann’s loan balance
after her 240th payment (if Ann makes exactly the required monthly
payment for 20 years)?
Also, Using your answer from Q11, what fraction of the 241st
payment will go to principal (in percent)?

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
originally for $291,000 with 360 payments at 4.1% APR, compounded
monthly.
a. Now that you have made 60 payments, what is the remaining
balance on the loan?
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
originally for $ 250,000 with 360 payments at 5 % APR, compounded
monthly. a. Now that you have made 60 payments, what is the
remaining balance on the loan? b. If the interest rate increases by
1 %, to 6 % APR, compounded monthly, what will be your new
payments?

Outstanding loan balance after 10 years on a $2,500,000 loan at
5% 20-year mortgage will be:
A. $1,555,538
B. $2,942,855
C. $1,528,801
D. $1,591,236
E. None of the above

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