Question

You are a lender and have offered a borrower a $400,000 30-year fixed-rate mortgage loan at 4.68% with monthly payments and fully amortize. The loan does not have any origination fees, but does have a 2% prepayment penalty during the loan's first 5 years. What would be the size of the prepayment penalty if the borrower repaid all remaining principal after the 46th payment? Please indicate your answer with two spaces right of the decimal.

Answer #1

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You are a lender and have offered a borrower a $400,000 30-year
fixed-rate mortgage loan at 4.68% with monthly payments and fully
amortize. The loan does not have any origination fees, but does
have a 2% prepayment penalty during the loan's first 5 years. What
is the ANNUAL PERCENTAGE RATE (APR) of the loan that you as the
lender are required to disclose to the borrower at the time of
origination given the borrower anticipate they will prepay the loan...

A borrower is offered a mortgage loan for $100,000 with an
interest rate of 10% and a 30-year amortization period with monthly
payments. The origination fee is 1% of the loan and the lender
charges two discount points. What is the effective interest
rate?

Marc wishes to buy a $500,000 home using Loan 1 (mortgage rate:
10.60%, maturity: 30 years, origination fee: 4 points, prepayment
penalty: 2%) with loan to value of 80% or using Loan 2 (mortgage
rate: 9.60%, maturity: 30 years, origination fee: 3 points,
prepayment penalty: 2%) with loan to value of 70%.The borrower
plans to be in the home for 5 years. Alternative investments of
similar risk can provide 19.00% IRR and borrowing from alternative
sources (than mortgage) would cost...

What is the incremental borrowing cost of $30,000 if a lender is
willing to offer a $240,000 30-year FRM Loan at 3.48%, or a
$270,000 30-year FRM Loan at 3.96%? Assume monthly payments, no
origination fees, no prepayment, and the loan fully amortizes.
Please indicate your answer as an annual percentage with two digits
right of the decimal, or 0.0644 --> 6.44.

A borrower has a 30-year fully amortizing mortgage loan for
$200,000 with an interest rate of 6% and monthly payments. If she
wants to pay off the loan after 8 years, what would be the
outstanding balance on the loan? (I know the correct answer would
be $175,545, but how to find the amount that goes in interest and
principal?)

A borrower is approved for a $80,000 mortgage loan at
12% interest with monthly payments over 30 years. The borrower is
required to pay 3.5 points.
PART A- Assume that monthly payments begin in one month.
What will each payment be?
a $822.89
b. $800.00
c. $794.09
d. $842.58
e. $876.85
PART B- What will the outstanding balance of the loan be
after five years assuming you make the first 60 payments exactly on
time?
a $75,396
b. $75,957
c....

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?

A borrower obtains a fully amortizing constant payment mortgage
loan for $75,000 at 12 percent for 3 years. Payments are monthly.
What will be the amount of remaining balance at the end of the
second month? (Answer is rounded)

a borrower takes out a 30 year mortgage loan for $361,923 with
an interest rate of 6% and monthly payments. What portion (dollar
amount) of the first months payment would be applied to
interest

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

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