Question

If a $95,000 home loan is obtained for 20 years at 5.4% interest the monthly payment...

If a $95,000 home loan is obtained for 20 years at 5.4% interest the monthly payment is $648.14. If the lender charges 2 points, what is the effective interest rate?

Homework Answers

Answer #1

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

SOLVED WITH BA II PLUS CALCULATOR

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
A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and...
A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points. What is the effective interest rate?
What is the APR of a monthly payment, 30-year loan of $82000.00 at 6% annual interest...
What is the APR of a monthly payment, 30-year loan of $82000.00 at 6% annual interest if the lender charged 4 points? (Express your answer to two decimal places as as xx.xx.)
a $134,100 mortgage for 20 years for a new home is obtained at the rate of...
a $134,100 mortgage for 20 years for a new home is obtained at the rate of 6.8% compounded monthly. What is the monthly payment of this mortgage? A) 960.73 B) 955.78 C) 1,039.68 D) 1,023.67
A home is bought for $420,000 with a 20% down payment.  The interest rate is 3.2% and...
A home is bought for $420,000 with a 20% down payment.  The interest rate is 3.2% and the term is 30 years (paid monthly).  What is the monthly payment?
Tom Burke bought a home in Virginia for $214,000. He put down 20% and obtained a...
Tom Burke bought a home in Virginia for $214,000. He put down 20% and obtained a mortgage for 25 years at 9%. What is Tom’s monthly payment and the total interest cost of the loan
A lender makes a loan of $100,000 at a 6% interest rate for 25 years with...
A lender makes a loan of $100,000 at a 6% interest rate for 25 years with monthly payments. The lender will require an origination fee of $1,000 and will also discount the loan by some amount. PART B- By what amount must the lender discount the loan such that the effective interest rate would be 8%, assuming the mortgage will be sold at par one year after closing? (How many discount points will the lender charge)? a. $743 (0.74 dp)...
You are borrowing $245,000 to purchase a home. The loan agreement requires a monthly payment based...
You are borrowing $245,000 to purchase a home. The loan agreement requires a monthly payment based upon a 4.5% quoted APR over 20 years. What is your monthly mortgage payment?
Your monthly income is $10,000 per month. Your mortgage payment is $1600, student loan payments are...
Your monthly income is $10,000 per month. Your mortgage payment is $1600, student loan payments are $500, car payments are $400 and credit card payments (paying down a credit card debt) are $1000. You are thinking of taking out a home equity loan to remodel your house. In order to keep your debt to income ratio below 36%, what is highest monthly payment you could afford on the home equity loan? If the term of the loan is 5 years...
A ​$95,000 a mortgage is to be amortized by making monthly payments for 20 years. Interest...
A ​$95,000 a mortgage is to be amortized by making monthly payments for 20 years. Interest is 7.4% compounded semi-annually for a five​-year term. ​(a) Compute the size of the monthly payment. ​(b) Determine the balance at the end of the five​-year term. ​(c) If the mortgage is renewed for a five​-year term at 7​% compounded semi-annually, what is the size of the monthly payment for the renewal​ term? ​(a) The size of the monthly payment is ​$__. ​(Round the...
National First Bank offers you a home loan for the next 30 years. The interest rate...
National First Bank offers you a home loan for the next 30 years. The interest rate on the loan is 2.5% per annum. Required: a. If the bank says that you need to pay $500 each week and the interest rate is compounded weekly, what is the amount of your home loan? b. What is your monthly payment if you wish to pay monthly instalments and the interest rate is compounding monthly?