a. $50,763
b. $51,763
c. $52,763
d. $53,763
e. none of the above
a. $160,000
b. $161,000
c. $162,000
d. $163,000
e. none of the above
3. Which of the following borrowers would be considered subprime. One with a FICO score of
a. 650
b. 675
c. 700
d. 750
e. none of above
4. Which of the following purchase mortgages?
I. FNMA II. FHLMC III. GNMA
a. I and II only
b. I and III only
c. II and III only
d. all of the above
e. none of the above
(1) Mortgage = $ 1000000, Interest Rate = 5 %, Maturity = 30 years and Balloon Payment = $ 750000 (will come in at the end of Year 30)
Let the annual mortgage payments be $ P
Therefore, 1000000 = P x (1/0.05) x [1-{1/(1.05)^(30)}] + 750000 / (1.05)^(30)
1000000 = 173533.09 + P x (1/0.05) x [1-{1/(1.05)^(30)}]
826466.91 = P x 15.372451
P = 826466.91 / 15.372451 = $ 53762.86 ~ $ 53763
Hence, the correct option is (d)
NOTE: Please raise separate queries for solutions to the remaining unrelated questions, as one query is restricted to the solution of only one complete question with a maximum of four sub-parts.
Get Answers For Free
Most questions answered within 1 hours.