Discuss mortgage loans in terms of the time value of money and loan amortization. What important points should every homeowner know about how mortgages work? (Hint: Think about taxes and getting the mortgage paid off. Please explain this as simply as possible to me.

Q: Suppose you need to borrow $200,000 to buy a home, and you are deciding between a 15 year mortgage…

A: Since you have asked a question with multiple parts, we will solve the first 3 parts for you. Please…

Q: en you are planning to buy a house or property mostly you will take mortgage loa t you may think…

A: In this we see that risk of mortgage loans and do analysis of that.

Q: Define the term amortized but write down its meaning in your own words in reference to amortized…

A: Since there are multiple questions it is only possible to solve the 1st part.

Q: You are considering giving a loan to a prospective commercial property investor. You are concerned…

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Q: Explain at least two benefits of using a real estate broker.

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Q: Suppose your bank’s loan officer tells you that if you take out a mortgage (i.e., you   borrow…

A: A short sale in terms of real estate is one in which a house is sold for a price that is less than…

Q: Explain the purchase-money mortgage?

A: Purchase-money mortgage: A purchase-money mortgage is a loan delivered to the debtor by the vendor…

Q: You are considering giving a loan to a prospective commercial property investor. You are concerned…

A: Debt service coverage ratio is the ratio that tells the available cash with the firm to repay its…

Q: You own a home that was recently appraised for $390,000. The balance on your existing mortgage is…

A: Given, Appraised value = $390,000 Existing mortgage = $129,350 Bank willing to pay = 70%

Q: You own a home that was recently appraised for $330,000. The balance on your existing mortgage is…

A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…

Q: Mortgages can be insured? Who insures mortgages and why? Can mortgages be sold? If so, who buys…

A: YES, mortgage can be insured. Mortgage insurance is an insurance policy that protects a mortgage…

Q: When a buyer goes in to apply for a loan on a new first mortgage, what must the lender give to the…

A: In the financial terms, the loan is referred to as the lending of the funds from one party to other…

Q: You are planning on taking out a mortgage and would ake to determine the cash value for a given down…

A: Solution:- When a loan is taken, it can either be repaid as lump sum payment or in instalments.

Q: If you are borrowing money to purchase a car, the loan agreement will likely include: Select an…

A: When you take a loan to buy a car then the concerned bank or financial institution will provide you…

Q: Learn to make the right decision for your family. Realize that everyone in the transaction of you…

A: A mortgage loan is a real estate property loan provided by banks and other financial institutions.…

Q: (Remember to find the total amount paid over the life of the loan and subtract from house cost) What…

A: Loan Amortization: It is the process of paying the loan amount by making periodic payments by the…

Q: If George's down payment on his home is less than 20% of the price of the home, it will mean that he…

A: The question is related to mortgage loan. The down payment is less than 20% of the price of home.…

Q: Participation #3:   Discuss mortgage loans in terms of the time value of money and loan…

A: A mortgage loan originates when an asset is purchased with loan. The mortgage loan is repaid in…

Q: When you use a mortgage to purchase a home, the lending institution effectively owns the home. You…

A: E(k) = equity value after k payment P = mortgage amount r =Monthly interest rate = 6%/12 = 0.5% t =…

Q: Give an example of a real estate mortgage and chattel mortgage. What are the obligations being…

A: The term mortgage refers to the loan taken by an individual for which the individual has put some…

Q: Discuss the basics of loan amortization and develop a loan amortization schedulethat you might use…

A: Loan amortization is the schedule that shows how the borrower will pay the debt in the future It is…

Q: You own a home that was recently appraised for $370,000. The balance on your existing mortgage is…

A: working notes: Net  Appraised Value =$3,70,000*70% =$259,000

Q: Can borrowers pay off part, or all, of loans any time that they desire?

A: No, borrowers can not make payment in part, or full loan amount at whatever time they desire to pay.…

Q: You own a home that was recently appraised for $330,000. The balance on your existing mortgage is…

A: Potential amount of credit available on home equity = ( Appraised value * Bank willing to loan ) -…

Q: As you research financing the purchase of your first home, you notice that the interest rate on an…

A: Mortgage refers to a legal contract based upon which a financial institution such as bank grants a…

Q: Explain how an ordinary annuity is involved when you take out an auto loan from a bank?

A: Hi There, Thanks for posting the question. As per our Q&A guidelines, must be answered only one…

Q: Explain The Federal Home Loan Mortgage Corporation?

A: Federal Home Loan Mortgage Corporation is a private corporation which is established with the…

Q: Why we need to know the interest, annuities, amortization and mortgage especially in real life?

A: Money charged on a regular basis at a set rate for the use of borrowed funds or to postpone debt…

Q: Which is the proper accounting treatment for a mortgage payment?

A: Answer:   Option b.

Q: What’s the purpose of the mortgage amortization for investors

A: Amortization is dividing of mortgage loans into series of payments which constitute principal and…

Q: You own a home that was recently appraised for $390,000. The balance on your existing mortgage is…

A: Solution- Appraised value of the home = $3,90,000 Lender's percentag = 70% =0.7 Existing mortgage =…

Q: You own a home that was recently appraised for $310,000. The balance on your existing mortgage is…

A: Bank is willing to give loan up to 70% of appraisal value of loan. Hence, home loan equity will be…

Q: How is a home mortgage an example of Time Value of Money?  What would you expect the impact of…

A: The time value of money (TVM) is the concept that money you have now is worth more than the…

Q: You are considering giving a loan to a prospective commercial property investor. You are concerned…

A: Debt Consolidation (DSCR) is a measure of a company's cash flow to pay off current liabilities. DSCR…

Q: need help for D, E, and G please   You are a loan officer at the West Elm Savings and Loan. Mr. and…

A: Interest - Interest is the charge paid/received regularly for borrowing/lending money. Interest is…

Q: xplain mortgage financing and how can someone afford a mortgage loan

A: Financing involves raising funds for undertaking business activities. Business activities includes…

Q: How much of the first payment for the mortgage described in the table will go towards interest?

A: Mortgage Payment: It is the payment made on the loan and includes principal and interest payments.…

Q: I can afford a $1500 per month mortgage payment. I found a 30 year loan at 6% interest. How big of a…

A: The present value function or concept can be used to determine the present value of a future sum or…

Q: Assuming the interest rates are roughly the same, would you prefer to financeyour new company by…

A: Investment is the amount which is spent by the producer for the purchase of those goods which…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.