Question

This morning, you took out a loan of $216,000 to purchase a home. The interest rate on the 30-year mortgage is 3.75 percent and you will make monthly payment. You have decided to make additional monthly payment of $360 beginning with the first payment that will occur one month from today. By how many years will you shorten the length of time it will take you to pay off the loan?

Group of answer choices

11.69 years

8.11 years

13.24 years

9.73 years

15.81 years

Answer #1

You have been saving money to buy a home and today, you decided
to buy a home and take out $350,000 mortgage loan from a bank. This
loan requires you to make a monthly payment for 30 years and the
interest rate on your loan is 4% APR compounded monthly. What is
your monthly mortgage payment for this loan? Please show your excel
formula in your answer and explain step-by-step calculation to
arrive to your answer.

You take out a $325,000 thirty-year mortgage (amortized loan)
when you purchase your home. The interest rate is 6%. You make
monthly payments of $1948.54. What is the principal
portion of your first payment?

Adam Wilson just purchased a home and took out a $250,000
mortgage for 30 years at 8%, compounded monthly.
a. How much is Adam’s monthly mortgage payment?
b. How much sooner would Adam pay off his mortgage if he made an
additional $100 payment each month? The financial tables in
Appendix A are not sufficiently detailed to do parts (c) and
(d).
c. Assume Adam makes his normal mortgage payments and at the end
of five years, he refinances the...

You borrow 410,000 to buy a home using a 30-year mortgage with
an interest rate of 3.75 percent and monthly payment. After making
your monthly payments on time for exactly 6 years calculate your
loan balance. Disregard property taxes and mortgage insurance.

You took out your home mortgage five years ago, and are
currently considering refinancing into a loan at a lower rate and
for a shorter term. Your original loan was for 30 years, at 6%
interest on the $200,000 borrowed, and you pay monthly. The new
loan you are considering will be for 15 years at a rate of 4%.
Again, the payments will be monthly. What will your new payment be
if you take on this new loan? SHOW...

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9 % per year. The
annual payment on the car is $ 5,100. You have just made a payment
and have now decided to pay off the loan by repaying the
outstanding balance. What is the payoff amount for the following
scenarios? a. You have owned the car for one year (so there are
four years left on the loan)? b. You have...

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9% per year. The
annual payment on the car is $4,800. You have just made a payment
and have now decided to pay off the loan by repaying the
outstanding balance. What is the payoff amount for the following
scenarios? a. You have owned the car for one year (so there are
four years left on the loan)? b. You have owned the...

When you purchased your car, you took out a five-year
annual-payment loan with an interest rate of 5.9%per year. The
annual payment on the car is $4,700.
You have just made a payment and have now decided to pay off the
loan by repaying the outstanding balance. What is the payoff amount
for the following scenarios?
a.You have owned the car for one year (so there are four years
left on the loan)?
b. You have owned the car for...

Suppose a home buyer took out a 75% LTV loan 9 years ago to
purchase a $190,000 home at a fixed interest rate of 8% amortized
over 30 years with monthly payments. This loan had 3 discount
points, a 1% origination fee, and a 4% prepayment penalty
associated with it. The owner is thinking about refinancing and has
decided to pay any costs incurred in the process out of his pocket.
The loan-to-value ratio on the new loan is not...

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?

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