Question

A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 11 years ago for $68,108. The home was financed by paying 15% down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 132nd payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive?

Answer #1

A couple wishes to borrow money using the equity in their home
for collateral. A loan company will loan them up to 70% of their
equity. They puchased their home 13 years ago for $69 comma 691.
The home was financed by paying 15% down and signing a 30-year
mortgage at 8.4% on the unpaid balance. Equal monthly payments
were made to amortize the loan over the 30-year period. The net
market value of the house is now $100,000. After...

6 years ago fraser family financed their new home with a 4.15
percent fixed rate 30-year mortgage. The house they bought cost
$450,000 and they made a 20% down payment on the house.
1. How much did they borrow 6 years ago?
2. What is their monthly mortgage payment?
3. If they keep making these payments for the full loan term how
much total interest will they pay on the loan?
4. What is their current loan balance?

A person purchased a $222,342 home 10 years ago by
paying 15% down and signing a 30-year mortgage at 10.8% compounded
monthly. Interest rates have dropped and the owner wants to
refinance the unpaid balance by signing a new 20-year mortgage at
5.4% compounded monthly. How much interest will refinancing
save?

A young couple take out a 30-year home mortgage of $145,000.00
at 6.9% compounded monthly. They make their regular monthly payment
for 7 years, then decide to up their monthly payment to
$1,200.00.
a) What is the regular monthly payment? $
b) What is the unpaid balance when they begin paying the
accelerated monthly payment of $1,200.00? $
c) How many monthly payment of $1,200.00 will it take to pay off
the loan? payments d) How much interest will this...

A person purchased a $130 314 home 10 years ago by paying 15%
down and signing a 30-year home mortgage at 8.7% compounded
monthly. Interest rates have dropped and the owner wants to
refinance the unpaid balance by signing a new 20-year mortgage at
6.6% compounded monthly. How much interest will refinancing save?
Money Saved: $_____ (Round to the nearest cent as needed.)

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 are purchasing a new home and need to borrow $325,000 from a
mortgage lender. The mortgage lender quotes you a rate of 6.5% APR
for a 30-year fixed-rate mortgage (with payments made at the end of
each month). The mortgage lender also tells you that if you are
willing to pay one point, they can offer you a lower rate of 6.25%
APR for a 30-year fixed rate mortgage. One point is equal to 1% of
the loan value....

The Martinezes are planning to refinance their home. The
outstanding balance on their original loan is $100,000. Their
finance company has offered them two options. (Assume there are no
additional finance charges. Round your answers to the nearest
cent.)
Option A: A fixed-rate mortgage at an interest rate of
2.5%/year compounded monthly, payable over a 25-year period in 300
equal monthly installments.
Option B: A fixed-rate mortgage at an interest rate of
2.25%/year compounded monthly, payable over a 15-year period...

Marc wishes to buy a $500,000 home using Loan 1 (mortgage rate:
10.60%, maturity: 30 years, origination fee: 4 points, prepayment
penalty: 2%) with loan to value of 80% or using Loan 2 (mortgage
rate: 9.60%, maturity: 30 years, origination fee: 3 points,
prepayment penalty: 2%) with loan to value of 70%.The borrower
plans to be in the home for 5 years. Alternative investments of
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sources (than mortgage) would cost...

1.
To take advantage of the rising value if their home and the current
low interest rate environment, John and Jack, married but filing
separately, decide to refinance their home mortgage. they had
purchased their house 10 years ago for $200,000 but now the value
is approximately $350,000. At purchase they haf put 30% down and
financed the rest at a mortgage rate of 5% fixed. at the time of
refinancing, the principal balance on the loan is $110,000. The...

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