Question

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

Answer #1

Answer A

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 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 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 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 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
• 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 8.50% and the initial
amortisation period is spread over 25 years, what was the
original amount of the mortgage loan?

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?...

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)

Assume a 30-yeear, $600,000, 6% mortgage with annual
payments.
What is the outstanding mortgage balance after you have made 10
payments?

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