Question

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000.

Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.

Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.

Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage B?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. (A) Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage A? (B) Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage B?
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage A?
1) Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments...
1) Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann’s annualized IRR from mortgage A? 2)Ann is looking for a fully...
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann’s annualized IRR from mortgage B?
12. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments...
12. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $135,000. Mortgage A has a 5.25% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 30 years, which mortgage has the lowest cost of borrowing (ie lowest annualized IRR)? Type 1 for A, type 2 for B. 13. Ann is looking for...
14. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments...
14. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $135,000. Mortgage A has a 5.25% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann’s annualized IRR from mortgage B? 15. Ann is looking for a...
1. Ann buys a house for $4,000,000. She gets a mortgage for $3,200,000 and pays the...
1. Ann buys a house for $4,000,000. She gets a mortgage for $3,200,000 and pays the rest. What is Ann’s Loan to Value (LTV) ratio at the time of purchase? Write the answer as a percent so for example 2.5% should be written as 2.5, not as 0.025. 2. Ann buys a house for $4,000,000. She gets a mortgage for $3,200,000 and pays the rest. How much home equity (HEQ) does Ann have? 3. Ann obtains a fully amortizing 30...
6. Ann is willing to spend $1,500 per month on her mortgage payment. If Ann obtains...
6. Ann is willing to spend $1,500 per month on her mortgage payment. If Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments at 4.38%, how big of a mortgage can she get? 7. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)? 8. Ann obtains a fully amortizing 30 year Fixed Rate...
Ann obtains a fully amortizing 15 year Fixed Rate Mortgage with monthly payments for $4,500,000 at...
Ann obtains a fully amortizing 15 year Fixed Rate Mortgage with monthly payments for $4,500,000 at 4.38%. How much does Ann need to pay per month?
Ann gets a fully amortizing 30-year fixed rate mortgage with monthly payments. The initial balance is...
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)?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT