Q: Finding the total interest of a loan is similar to finding the total interest in an annuity's
A: When you take a loan then you have to make payments towards the principal amount as well as towards…
Q: How can we calculate an Effective Interest Rate Based on a Payment Period?
A: The effective annual rate of interest is the actual or the real rate of interest paid or received…
Q: What Percentage of down- payment do you have to give to the bank when buying a mortgage
A: Down Payment : It is the Initial lump sum amount which the borrower pay before sanction of loan.…
Q: Explain Second Mortgages and Shorter Maturities?
A: It is a type of mortgage loan which is similar to a mortgage loan which is tenable by a borrower's…
Q: For the second mortgage application, calculate the percentage of appraised value and the potential…
A: Please find the answer to the above question below:
Q: Give and explain the factors that affect the interest rate on the loan
A: Following are the factors that affect interest rate on the loan: 1. Supply and Demand Interest…
Q: For the second mortgage application, calculate the percentage of appraised value and the potential…
A:
Q: The is the length of the loan. APR (your response) term interest rate
A: length of a loan refers to the duration of the period, where the person is required to repay the…
Q: With regard to mortgages, how is the monthly payment including principal and interest categorized as…
A: An annuity refers to the annual payment of a debt which includes a portion of principal as well as…
Q: define the parameters included in the interest rate of a mortgage. In addition, explain which of the…
A: Parameters included in the interest rate of a mortgage. Parameters included in the interest rate of…
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: Which of the following is subject to change over the life of an adjustable-rate mortgage loan?…
A: An adjustable-rate mortgage is a mortgage where the interest rate applied on the outstanding balance…
Q: Which of the following is a mortgage loan that has a fixed rate, a fixed term, and fixed payments? O…
A: The question is based on the concept of mortgages and different methods of mortgages. A mortgage is…
Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?
A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…
Q: Explain The Price Level Adjusted Mortgage (PLAM)?
A: Mortgage loan allows the buyer to pay some portion of amount in the beginning and pay the remaining…
Q: The actual amount that is given to the borrower is called the after the loan has been discounted.
A: Basically a discounted loan has three components Discount Proceeds Maturity Value
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: The repayment of a loan in a series of equal periodic payments is called. O a. Mortgage O b. Down…
A:
Q: When would there be a discount on a loan? How about a premium?
A: The loan is purchased to finance the purchase of equipment, education purposes, the purchase of…
Q: Explain the reason why the wraparound lender should be willing to make the loan at a rate that is…
A: Wraparound mortgage is a type of secondary financing in which the seller extends an additional…
Q: Which of the following is true? a. Fixed-rate Mortgage - Your interest rate may vary considerably b.…
A: Primary mortgage are of two types- fixed-rate mortgages and adjustable-rate mortgages A fixed-rate…
Q: What is the total interest paid over the life of the mortgage?
A: Answer to Question: Total Interest paid over the life of the mortgage=89,984.94 (Refer Workings)…
Q: Why might a wraparound lender provide a wraparound loan at a lower rate than a new first mortgage?
A: Introduction: Wraparound mortgage is a type of loan in which loans are given to borrowers, who is…
Q: What is meant by a “purchase-money” mortgage loan? When could a loan not be a purchase-money…
A: A purchase-money mortgage loan is a loan that home sellers provide to the buyers of the home. Buyers…
Q: Illustration the mortgage for future advances?
A: The question is based on the concept of mortgage or security used for line of credit for future…
Q: How do inflationary expectations influence interest rates on mortgage loans?
A: Inflation: It is the rate at which the purchasing power of the money decreases every year.…
Q: Which of the following is true when the mortgage loan is an amortizing loan? a. At the beginning of…
A: Borrowings are the liability of the company which is used to finance the requirement of the funds.…
Q: ents plus the interest on the remaining loan. What was the amount of the loan? What was the amount…
A: in this problem payment is made by four equal payment plus interest on remaining amount.
Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…
A: Simple Interest Rate: It is an easy method to compute interest on the loan. It is computed by…
Q: (a) How many payments will be paid? (b) What is the size of the final annuity payment?
A: Given in the question: Annuity Cash Value $12,000 Payment at the beginning of every six…
Q: Explain Incremental Borrowing Cost versus a Second Mortgage?
A: The lenders offer different repayment terms of the same loan to the different borrowers. The term of…
Q: What is the interest rate the borrower will pay after the first rate adjustment?
A: Data given: Start rate = 3.50% Maximum cap for the first year=3% MTA index at the end of the first…
Q: Determine the effective interest rate to the borrower.
A: The effective interest rate to the borrower would be calculated using the nominal rate. The…
Q: Given the role of the loan originator in the securitization process of a mortgage loan described in…
A: Securitization: A process of combining various financial assets and then selling this pool to…
Q: Discuss some of the most elementary terms used in fixed interest rate loans?
A: A loan is referred as the borrowed amount which is procured by the borrower from various financial…
Q: What is the Cumulative interest payment?
A: Cumulative interest payment is the sum of all previous interest payments that are made for an…
Q: For the second mortgage application, calculate the percentage of appraised value and the potential…
A: Given : Appraised value = $127,500 Lender's Percentage = 70% Balance of first mortgage = $53,200
Q: Using the examples from the videos, which of these types of loans require that some principal be…
A: When money is given by one party to another on the promise of repayment at the end of a specified…
Q: Summary and Comparisons of Fixed Interest Rate, Constant Payment Mortgage (CPM) Loans with Various…
A: Fixed interest rate loans are the loans in which the interest to be paid by the borrower will remain…
Q: Explain Partially Amortizing, Constant Payment Mortgage (CPM) Loans with example?
A: Amortization can be defined as paying back of the loan amount in installments according to the…
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- Sharapovich Inc. borrowed $50,000 from Kerber Bank and signed a 5-year note payable stating the interest rate was 5% compounded annually. Sharapovich Inc. will make payments of $11,548.74 at the end of each year. Prepare an amortization table showing the principal and interest in each payment.Comprehensive Notes Receivable On January 1, 2019, Seaver Company sold land with a book value of 23,000 to Bench Company. Bench paid 15,000 down and signed a 15,000 non-interest-bearing note, payable in two 7,500 annual installments on December 31, 2019, and 2020. Neither the fair value of the land nor of the note is determinable. Benchs incremental borrowing rate is 12%. Later in the year, on July 1, 2019, Seaver sold a building to Hane Company, accepting a 2-year, 100,000 non-interest-bearing note due July 1, 2021. The fair value of the building was 82,644.00 on the date of the sale. The building had been purchased at a cost of 90,000 on January 1, 2014, and had a book value of 67,500 on December 31, 2018. It was being depreciated on a straight-line basis (no residual value) over a 20-year life. Required: 1. Prepare all the journal entries on Seavers books for January 1, 2019, through December 31, 2020, in regard to the Bench note. 2. Prepare all the journal entries on Seavers books for July 1, 2019, through July 1, 2021, in regard to the Hane note. 3. Prepare the notes receivable portion of Seavers balance sheet on December 31, 2019 and 2020.Find the mortgage balance after the first three payments on a 3030-year $170,000$170,000 mortgage that was financed at an APR of 4.25%4.25% and has a monthly payment of $836.30$836.30. Payment Number Interest Payment Principal Payment Mortgage Balance 11 $602.08$602.08 $234.22$234.22 Balance 1 22 $601.25$601.25 $235.05$235.05 Balance 2 33 $600.42$600.42 $235.88$235.88 Balance 3
- Palisades Inc purchased several trucks with an installment note payable on 1/1/2019. Palisades Incagreed to pay $50,000 at the end of each year for four years. The instalments will fully pay off theloan and all interest. The interest rate of the loan was 4%. What was Palisades Inc's loan balance at12/21/20192 (Round your answer to the nearest dollar)PV of $1 when N=4, 1=4% =0.85480PV of annuity when N=4, I=4% = 3.62990)Marigold Corp. purchased a building on January 2 by signing a long-term $624000 mortgage with monthly payments of $5950. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be $623250. $618050. $618800. $624000.Calculate the expected loss assuming that it is defaulted in month 60. In a mortgage loan with the following characteristics: PD = 6% Value of the loan: $1,000,000.00 MXN; monthly payment: $8,500.00 MXN; term: 20 years (240 months); LGD: 13%. Select one: a.-$3,822.00 MXN. b.-$8,500.00 MXN. c.-$3,833.00 MXN. d.-$7,800.00 MXN.
- Crane Company purchased a building on January 2 by signing a long-term $3288000 mortgage with monthly payments of $30200. The mortgage carries an interest rate of 10 percent. The amount owed on the mortgage after the first payment will be $3288000. $3257800. $3260600. $3285200.Mortgage PayableE1B. Kavra Corporation purchased a building by signing a $150,000 long-term mortgagewith monthly payments of $2,000. The mortgage carries an interest rate of 12 percent.1. Prepare a monthly payment schedule showing the monthly payment, the interest forthe month, the reduction in debt, and the unpaid balance for the first three months.(Round to the nearest dollar.)2. Prepare the journal entries to record the purchase and the first two monthlypayments.Delmar company purchase a building on January 1 by signing a long-term $3,300,000 mortgage with monthly payments of $30,800. The mortgage carries an interest rate of 10%. What will be the amount owed on the mortgage after the first payment? A. $3,300,000 B. $3,296,700 C. $3,269,200 D. $3,272,500
- assume a 30-year $200,000 mortgage loan with an apr of 7%. what is the amount of interest and principal, respectively applied from the first annual fixed payment? a) $7,000; $133.33 b)$133.33; $7,000 c)$14,000; $2,177.28 d) $2,177.28; $14,000Mortgage Information: Interest Only Payments Initial Loan Amount: $22,000 Fully Amortizing Term: 30 years Fixed rate interest rate: 3.25% Fees at origination: 3rd party fees: $750. What are the monthly payments? O.a $59.58 O.b $131.91 O.c $715.00Part (A) Yusuf Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2018, to obtain financing for a new building. The terms provide for semiannual installment payments of $64,194. Instructions 1- Prepare the entry to record the mortgage loan on December 31, 2018, and the first installment payment. 2- Explain the concept behind mortagage notes? Part (B) What would the entry to record the issuance of two thousand bonds with a face value of $1,000 each and are sold at 103.
