Question

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)

Answer #1

The formula to find the monthly payment=loan amount*interest rate*(1+interest rate)^n/[((1+interest rate)^n)-1]

interest rate=monthly interest rate=12%/12=1%

n=total number of periods=3*12=36

monthly payment=75000*1%*(1+1%)^36/[((1+1%)^36)-1]

=75000*1%*1.430769/0.430769

=2491.1

The formulas and outstanding balance after 2nd montly payment is given below.

The end of the second month outstanding=$71,500.4

Periods | Opening balance | Monthly payment | Interest=(Opening balance*(12%/12)) | Principal=monthly payment-Interest | Ending balance=Opening balance-principal |

1 | 75000.0 | 2491.1 | 750.0 | 1741.1 | 73258.9 |

2 | 73258.9 | 2491.1 | 732.6 | 1758.5 | 71500.4 |

A borrowwer obtain a fully amortizing constant payment mortgage
loan for $75,000 at 24 percent for 3 years.Payments are
monthly.What will be the amount of remaining balance at the end of
the second month?

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?)

For a standard, fully amortizing mortgage loan of $250,000, at
3.5 percent interest for 30 years, find the balance at the end of 5
years. If the borrower refinances the loan, how much would need to
be refinanced at the end of 20 years?

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...

48. A borrower makes a fully amortizing $100,000 loan at 3
percent for 30 years. The borrower is considering paying off the
loan after 15 years. How much is the borrower saving in interests
by paying off the loan earlier?

PLEASE SHOW FORMULA USED(NOT FROM EXCEL) AND STEPS USING
FINANCIAL CALC
7. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage
with monthly payments for $135,000 at 5.25%. 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 Mortgage
with monthly payments for $135,000 at 5.25%. What
percent of Ann’s 20th payment goes to
interest?
9. Ann obtains a fully amortizing 30 year Fixed...

A borrower obtains a $150,000 reverse annuity mortgage with
monthly payments over 10 years. If the interest rate of the
mortgage loan is 8%, what is the monthly payment received by the
borrower?
$820
$863
$1,250
$1,820
Correct answer is A
monthly rate: 8/12=.66667%
number of month = 10*12=120
monthly payment =future value/FVA .66667%,120
= 150000/182.95
= $ 819.90 Per month (approx 820)
**you can find future value annuity factor using financial
calculator
This explanation is so confusing...

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?

Ruby obtains a $500,000 fully amortizing CPM loan with a 3.25
percent interest rate and term of 30 years. The loan includes 2
points in upfront fees. If Ruby expects to sell the house and repay
the loan in 12 years, what is the EIR on the loan?

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

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 27 minutes ago

asked 42 minutes ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago

asked 4 hours ago