Question

Outstanding loan balance after 10 years on a $2,500,000 loan at 5% 20-year mortgage will be:...

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

Homework Answers

Answer #1

Answer A

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is the loan balance after 5 years on a conventional fixed-rate 6.5% mortgage with the...
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
Calculate the mortgage balance after 10 years if the initial mortgage is $1,500,000, with an interest...
Calculate the mortgage balance after 10 years if the initial mortgage is $1,500,000, with an interest rate of 12% and a 20-year amortization. Provide steps, explanations & formulas used
A borrower takes out a 25-year adjustable rate mortgage loan for $540,000 with monthly payments. The...
A borrower takes out a 25-year adjustable rate mortgage loan for $540,000 with monthly payments. The first 5 years of the loan have a “teaser” rate of 4%, after that, the rate can reset with a 3% annual rate cap. On the reset date, the composite rate is 6%. What would the Year 6 (after 5 years; 20 years left) monthly payment be? Group of answer choices A) $3,369.84 B) $3,407.02 C) none of the answers is correct D) $3,235.05...
Consider an "interest only” mortgage that is made for $80,000 at 5 percent interest for 20...
Consider an "interest only” mortgage that is made for $80,000 at 5 percent interest for 20 years. The monthly payments will be constant during the life of the loan. Assume that the borrower does not make any partial repayments of principal. a. What will the monthly payments be? b. What will be the loan balance after 5 years? c. lf the loan is repaid after 5 years, what will be the yield to the lender? d. Instead of being repaid...
A borrower is approved for a $80,000 mortgage loan at 12% interest with monthly payments over...
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....
John is considering an adjustable rate mortgage loan with the following characteristics: • Loan amount: $400,000...
John is considering an adjustable rate mortgage loan with the following characteristics: • Loan amount: $400,000 • Term: 30 years • Index: one year T-Bill • Margin: 2% • Periodic cap: 2% • Lifetime cap: none • Negative amortization: not allowed • Financing costs: 1% origination fee and 2 points.   The Treasury bill yield is 4% at the outset and is expected to increase to 6% at the beginning of the second year and to 11% at the beginning of...
The balance of a mortgage loan after 60 months is $138,959. If the interest rate is...
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?
Consider a 20-year mortgage for $107660 at an annual interest rate of 4.0%. After 5 years,...
Consider a 20-year mortgage for $107660 at an annual interest rate of 4.0%. After 5 years, the mortgage is refinanced to an annual interest rate of 3.0%. What are the monthly payments after refinancing? Round your answer to the nearest dollar.
A borrower has a 30-year mortgage loan for $220,000 with an interest rate of 4.5% and...
A borrower has a 30-year mortgage loan for $220,000 with an interest rate of 4.5% and monthly payments. If she wants to pay off the loan after 6 years, what would be the outstanding balance on the loan? (Show work with calculator strokes)
We have a 10-year mortgage for $300,000 at 9.75% p.a. It is to be repaid in...
We have a 10-year mortgage for $300,000 at 9.75% p.a. It is to be repaid in monthly repayments. (a) What is the repayment amount? Assume the interest is compounded monthly. Which formula should you use to solve this problem? (b) What is the balance outstanding after two years? How much principal and how much interest have been paid? (c) After two years, the interest rate falls to 9.25% p.a. What prepayment penalty would make it unattractive to prepay the loan?...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT