Question

Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. Tim anticipates the index to be 3.50% at the time of the 1st reset. Tim’s monthly mortgage payment is going to be $2952.36190 during the 1st 3 years. If the index resets to 3.50% as Tim forecasts, what will his new mortgage payment be in year 4?

Answer #1

Tim wants to buy an apartment that costs $750,000 with an 85%
LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser
rate of 3.75% and monthly payments. The reset margin on the loan is
300 basis points above 1 year CMT. The index was 1% at the time of
origination. Tim also had to pay 3 points for this loan. Suppose
the index rate will remain 1% for the life of the loan. Compute the
true...

Tim
wants to buy an apartment that costs $750,000 with an 85% LTV
mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of
3.75%. The reset margin on the loan s 300 basis points above 1 year
CMT. The index was 1% at the time of origination. Tim also had to
pay 3 points ifor this loan. Suppose the index rate will remain 1%
for the life of the loan. Compute the true APR for this...

Mandy would like to buy an apartment and needs a mortgage for
$280,000. She was able to qualify for a loan at 7.2% for 30 years.
What is the amount of her monthly payment?
Use a spreadsheet program like Microsoft Excel. Start with a
blank worksheet.
In your spreadsheet, create a TVM DataFrame
TVM DataFrame
c
n
i
PV
PMT
FV
1
From the problem, fill-in the values for Mandy's mortgage
annuity into your spreadsheet. Place a question mark in...

Congratulations! You just finished up your MHA. You are now
making the big bucks!! You are pulling down $75,000 a year. Your
estimated payroll taxes are 20%. You also have a small healthcare
consultancy and you make $100 a month for your wonderful advice.
You have a lot of expenses: You bought a new car - the car note is
$350 a month. Gas for your car is $50 a month You have a mortgage
of $850. Health insurance...

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