Question

You take out standard 30-year mortgage with fixed monthly payments to purchase your house. The mortgage is for $250,000 with a nominal annual rate of 4.6% (Monthly compounding). Each month, you send in a check for $1,403.81, which is above the required payment, where the excess payment directly reduces the outstanding balance each month. What portion of your payments in months 25-36 go towards interest?

Answer #1

7. In order to purchase a house, you have taken out a 30
year mortgage of $200,000 at 4.29% interest per year. You make
payments at the end of every month. What is the amount of each
monthly payment?

You
are borrowing $250,000 to buy a house, using a standard, 30 year
mortgage. your mortgage lender offers a 5.50% mortgage with no
points, or a 5.20% mortgage with X points. You plan on living in
the house for exactly 60 months, paying only the required payment
each month, and without refinancing your mortgage. What points wilk
make yku indifferent between the two mortgages. Use the 5.50% rate
to discount cash flows between the two options.

Consider a 30‐year mortgage on at $400,000 house that requires
monthly payments and has an interest rate (APR) of 8% per year. You
have $ 50,000 in cash that you can use as a down payment on the
house, but you need to borrow the rest of the purchase
price.
a) What will your monthly payments be if you sign up for this
mortgage?
b) Suppose you sell the house after 10 years. How much will you
need to pay...

John and Peggy recently bought a house. They financed the house
with a $125,000, 30-year mortgage with a nominal interest rate of 7
percent. Mortgage payments are made at the end of each month. What
total dollar amount of their mortgage payments during the first
three years will go towards repayment of principal?

You plan to purchase a $380,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.20
percent, or a 15-year mortgage with a rate of 7.00 percent. You
will make a down payment of 25 percent of the purchase price.
a. Calculate the amount of interest and, separately, principal
paid on each mortgage. What is the difference in interest paid?
b. Calculate your monthly payments on the two mortgages. What is
the difference...

You plan to purchase a $300,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 7.80
percent, or a 20-year mortgage with a rate of 7.20 percent. You
will make a down payment of 15 percent of the purchase price. a.
Calculate the amount of interest and, separately, principal paid on
each mortgage. What is the difference in interest paid? b.
Calculate your monthly payments on the two mortgages. What is the
difference...

You plan to purchase a $390,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.50
percent, or a 15-year mortgage with a rate of 7.55 percent. You
will make a down payment of 20 percent of the purchase price. a.
Calculate the amount of interest and, separately, principal paid on
each mortgage. What is the difference in interest paid? b.
Calculate your monthly payments on the two mortgages. What is the
difference...

You
take out a $550,000 30 year mortgage with monthly payments and an
APR of 10%, compounded monthly. How much of your
222nd
mortgage payment is
interest?

You plan to purchase a $130,000 house using a 15-year mortgage
obtained from your local credit union. The mortgage rate offered to
you is 5.25 percent. You will make a down payment of 20 percent of
the purchase price.
a.
Calculate your monthly payments on this mortgage. (Do not
round intermediate calculations. Round your answer to 2 decimal
places. (e.g., 32.16))
Monthly payment $
b.
Construct the amortization schedule for the first six
payments. (Do not round intermediate calculations....

You plan to purchase a $390,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.50
percent, or a 15-year mortgage with a rate of 7.55 percent. You
will make a down payment of 20 percent of the purchase price. a.
Calculate the amount of interest and, separately, principal paid on
each mortgage. What is the difference in interest paid? b.
Calculate your monthly payments on the two mortgages. What is the
difference...

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