Question

you are applying for a $1,000,000 mortgage. If the interest rate on your 360-month fully amortizing,...

you are applying for a $1,000,000 mortgage. If the interest rate on your 360-month fully amortizing, fixed rate, level payment loan is 3% annual, what is the percentage increase in your monthly payment if the interest rate were 6% annual ?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Monthly payment with r = 3%/12 = 0.0025 per month

Now we will find Monthly payment with r = 6%/12 = 0.005 per month

Increase in monthly payment = 5,995.505251252/4,216.0403370152 - 1

Increase in monthly payment = 0.4220701824

Increase in monthly payment = 42.20701824%

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
Suppose you have taken out a $200,000 fully amortizing fixed rate mortgage loan that has a...
Suppose you have taken out a $200,000 fully amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 4.25%. In month two of the mortgage, how much of the monthly mortgage payment does the principal repayment portion consist of?
Ann gets a fully amortizing 30-year fixed rate mortgage with monthly payments. The initial balance is...
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)?
Ann gets a fully amortizing 30-year fixed rate mortgage with monthly payments. The initial balance is...
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)? Also, Using your answer from Q11, what fraction of the 241st payment will go to principal (in percent)?
Ann gets a fully amortizing 30-year fixed rate mortgage with quarterly payments for $1,000,000. The interest...
Ann gets a fully amortizing 30-year fixed rate mortgage with quarterly payments for $1,000,000. The interest rate is 4%, compounded quarterly. She prepays the mortgage in 1 quarter (i.e. she makes the 1st payment and immediately prepays the remaining balance). There is still an origination fee of 2 points, but now Ann decides to keep the mortgage for the whole term, i.e. she no longer plans to prepay it. What is Ann’s APR?
1. Calculate the monthly payment for a 30-year fixed rate mortgage of $500,000 with 6% mortgage...
1. Calculate the monthly payment for a 30-year fixed rate mortgage of $500,000 with 6% mortgage rate and a balloon payment of $300,000 at maturity. 2. Assume we have a $2 million 10 year mortgage with annual payments beginning in exactly one year; the interest rate is 8%. Determine the annual mortgage payment under the following assumptions. In each case verify your calculation by giving the relation between the pay rate and the accrual rate. A) Loan is fully amortizing...
A borrower has a 30-year fully amortizing mortgage loan for $200,000 with an interest rate of...
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?)
SHOW CLEAR WORK ON EXCEL A fully amortizing mortgage is made for $80,000 for 25 years....
SHOW CLEAR WORK ON EXCEL A fully amortizing mortgage is made for $80,000 for 25 years. Total monthly payments will be $900 per month. What is the interest rate on the loan?
A borrower obtains a fully amortizing constant payment mortgage loan for $75,000 at 12 percent for...
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)
QUESTION 11 Which of the following mortgages will have the largest monthly payment? A. Fully amortizing...
QUESTION 11 Which of the following mortgages will have the largest monthly payment? A. Fully amortizing 25 year FRM, annual i = 4%, mortgage amount $200,000 B. Fully amortizing 30 year FRM, annual i=2%, mortgage amount $200,000 C. Fully amortizing 30 year FRM, annual i = 3%, mortgage amount $200,000 D. Fully amortizing 30 year FRM, annual i=4%, mortgage amount $200,000 E. 30 year FRM, annual i=3%, mortgage amount $200,000 with a balloon payment of $20,000 at the end of...
1) Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments...
1) Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Ann’s annualized IRR from mortgage A? 2)Ann is looking for a fully...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT