Question

When doing a refinancing problem the timing (n) of the new loan is: A. the loan...

When doing a refinancing problem the timing (n) of the new loan is:

A. the loan balance plus real estate taxes and flood insurance added

B. the original loan amount for a newly selected time period

C. equal to the remaining time of the original loan

D none of the above

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Correct Option is C. equal to the remaining time of the original loan.

Therefore, when doing a refinance problem the timing (n) of the new loan is "equal to the remaining time of the original loan.

Refinancing is the replacement of an existing debt obligation with another debt obligation

Refinancing a loan allows a borrower to replace their current debt obligation with one that has more favorable terms. Through this process, a borrower takes out a new loan to pay off their existing debt, and the terms of the old loan are replaced by the updated agreement.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an...
A few years back, Dave and Jana bought a new home. They borrowed $230,415 at an annual fixed rate of 5.49% (15-year term) with monthly payments of $1,881.46. They just made their twenty-fifth payment and the current balance on the loan is $208,555.87. Interest rates are at an all-time low, and Dave and Jana are thinking of refinancing to a new 15-year fixed loan. Their bank has made the following offer: 15-year term, 3.0%, plus out-of-pocket costs of $2,937. The...
Problem 4-20 Amortization Schedule Consider a $10,000 loan to be repaid in equal installments at the...
Problem 4-20 Amortization Schedule Consider a $10,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7%. Set up an amortization schedule for the loan. Round your answers to the nearest cent. Enter "0" if required Year Payment Repayment Interest Repayment of Principal Balance 1 $   $   $   $   2 $   $   $   $   3 $   $   $   $   4 $   $   $   $   5 $   $   $  ...
To purchase a new equipment, you borrow $52,550. An equipment dealer offers a five-year loan at...
To purchase a new equipment, you borrow $52,550. An equipment dealer offers a five-year loan at an interest rate of 5% compounded annually. If you make only payment at the end of the load period, repaying the principal and interest. a) What is the number of time periods (N) you should use in solving this problem? b) What rate of interest (i), per period of time, should be used in solving this problem? c) Is the present single amount of...
Problem 10-07A a-c (Part Level Submission) Larkspur, Inc. issues a $441,000, 10%, 10-year mortgage note on...
Problem 10-07A a-c (Part Level Submission) Larkspur, Inc. issues a $441,000, 10%, 10-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $71,771. Payments are due on December 31. (a) Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Interest...
You hope to be able to purchase a home within 1-3 years after graduation. You expect...
You hope to be able to purchase a home within 1-3 years after graduation. You expect to have to save for the necessary down payment and closing costs without relying on financial help from your family or relatives. Your financial goal is to purchase a home in the $300,000 price range and have the available cash for the down payment and required closing costs for the type of mortgage financing that you select and are able to receive home mortgage...
ONLY ANSWER F AND G 1. Mortgage Problem Consider a 20-year mortgage for $350,000 is taken...
ONLY ANSWER F AND G 1. Mortgage Problem Consider a 20-year mortgage for $350,000 is taken out in Jan. 2019 at a 5.40% annual interest rate.      a. What is the Payment Amount for this mortgage?   (2)      b. What total amount will be paid by the borrower over the 20-year payback period? (2)      c. What is the Interest / Principle breakdown for payment #5?   (2)      d. If a $250 per month prepay is made starting with payment...
Oriole Electronics issues a $420,500, 4%, 15-year mortgage note on December 31, 2019. The proceeds from...
Oriole Electronics issues a $420,500, 4%, 15-year mortgage note on December 31, 2019. The proceeds from the note are to be used in financing a new research laboratory. The terms of the note provide for annual installment payments, exclusive of real estate taxes and insurance, of $51,844. Payments are due on December 31. Prepare an installment payments schedule for the first 4 years. (Round answers to 0 decimal places, e.g. 15,250.) Annual Interest Period Cash Payment Interest Expense Reduction of...
Problem 11-1A On January 1, 2017, the ledger of Accardo Company contains the following liability accounts....
Problem 11-1A On January 1, 2017, the ledger of Accardo Company contains the following liability accounts. Accounts Payable $53,500 Sales Taxes Payable 7,800 Unearned Service Revenue 15,500 During January, the following selected transactions occurred. Jan. 5 Sold merchandise for cash totaling $19,872, which includes 8% sales taxes. 12 Performed services for customers who had made advance payments of $10,000. (Credit Service Revenue.) 14 Paid state revenue department for sales taxes collected in December 2016 ($7,800). 20 Sold 900 units of...
The following payments and receipts are related to land, land improvements, and buildings acquired for use...
The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk next to the item letter. a. Fee paid to attorney for title search $ 2,395 b. Cost of real estate acquired as a plant site: Land 283,200 Cost of real estate acquired as a plant site: Building 57,400 c. Delinquent real estate taxes on property, assumed by purchaser 15,175 d. Cost of...
Problem 14-18 Common-Size Statements and Financial Ratios for a Loan Application [LO14-1, LO14-2, LO14-3, LO14-4] Paul...
Problem 14-18 Common-Size Statements and Financial Ratios for a Loan Application [LO14-1, LO14-2, LO14-3, LO14-4] Paul Sabin organized Sabin Electronics 10 years ago to produce and sell several electronic devices on which he had secured patents. Although the company has been fairly profitable, it is now experiencing a severe cash shortage. For this reason, it is requesting a $570,000 long-term loan from Gulfport State Bank, $135,000 of which will be used to bolster the Cash account and $435,000 of which...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT