Question

You borrow 410,000 to buy a home using a 30-year mortgage with an interest rate of 3.75 percent and monthly payment. After making your monthly payments on time for exactly 6 years calculate your loan balance. Disregard property taxes and mortgage insurance.

Answer #1

You borrow $185,000 to buy a house. The mortgage interest rate
is 7.5 percent and the loan period is 30 years. Payments are made
monthly. What is your monthly mortgage payment?
$1,293.55
$953.70
$1,083.78
$1,153.70
$1,398.43

You need a 30-year, ﬁxed-rate mortgage to buy a new home for
$450,000. Your mortgage bank will lend you the money at a 6 percent
APR for this loan. However, you can afford monthly payments of only
$2,000, so you offer to pay off any remaining loan balance at the
end of the loan in the form of a single lump sum payment. How large
is this lump sum payment?

You need a 30-year, fixed-rate mortgage to buy a new home for
$265,000. Your mortgage bank will lend you the money at an APR of
5.6 percent for this 360-month loan. However, you can only afford
monthly payments of $1,050, so you offer to pay off any remaining
loan balance at the end of the loan in the form of a single balloon
payment.
How large will this balloon payment have to be for you to keep
your monthly...

You need a 30-year,
fixed-rate mortgage to buy a new home for $230,000. Your mortgage
bank will lend you the money at a 7.6 percent APR for this
360-month loan. However, you can afford monthly payments of only
$800, so you offer to pay off any remaining loan balance at the end
of the loan in the form of a single balloon payment.
How large will this
balloon payment have to be for you to keep your monthly payments at...

2. Jerry and Katrina took out a 30-year, $360,000 mortgage on
their 2800-square-foot house. The mortgage rate is 0.4% per month
so their payments are $1888.80 per month. How much would they still
owe on their mortgage immediately after making their 220th monthly
payment?
3. Sue is planning to buy a house. She has been advised by her
financial planner that her monthly house payment (which includes
property taxes and insurance) should not exceed 30% of her
take-home pay. Currently,...

You borrow $125,000 to buy a
house. Your mortgage rate is 6% per year (0.5% per month).
The term of the mortgage is 30 years and
you will have the same required payment every month. Ignore
taxes.
(i) What is your monthly mortgage
payment?
(ii) After 30 months of payments, what is
the remaining balance on your mortgage?
(iii) For the first 30 months you make the
required payment. Beginning in the 31st month you pay an extra $100
per...

12. you are borrowing $1 million to buy your dream home, taking
a 30 -year mortgage at 6% per year and undertaking to make equal
monthly payments at the end of each month for 30 years to amortize
the loan. What is your monthly payment, interest portion of your
first payment and principal portion of your first payment?

3. You take a $500,000 mortgage to buy a vacation home. The
mortgage entails equal monthly payments for 10 years, 120 payments
in all, with the first payment in one month. The bank charges you
an interest rate of 9.6% (APR with monthly compounding).
a. How much of your first payment is interest, and how much is
repayment of principal?
b. What is the loan balance immediately after the 10th payment?
(Calculate the loan balance using the annuity formula.)
c....

You need a 30-year, fixed-rate mortgage to buy a new home for
$240,000. Your mortgage bank will lend you the money at a 9.1
percent APR for this 360-month loan. However, you can afford
monthly payments of only $950, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
Required:
How large will this balloon payment have to be for you to keep
your monthly payments...

You need a 25-year, fixed-rate mortgage to buy a new home for
$190,000. Your mortgage bank will lend you the money at a 9.1
percent APR for this 300-month loan. However, you can afford
monthly payments of only $800, so you offer to pay off any
remaining loan balance at the end of the loan in the form of a
single balloon payment.
How large will this balloon payment have to be for you to keep
your monthly payments at...

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