If an adjustable-rate 20-year mortgage for $129,000 starts at 6.0 percent and increases to 6.5 percent, what is the increase in the monthly payment amount? Use Exhibit 7-7. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Monthly payment increase Exhibit 7-7Term Rate30 Years25 Years20 Years15 YearsMortgage Payment$4.22$4.74$5.55$6.913.0%Factors (principal3.54.495.015.807.15and interest factors4.04.775.286.067.40per $1,000 of loan4.55.075.566.337.65amount)5.05.375.856.607.915.55.686.146.888.176.06.006.447.168.446.56.326.757.468.717.06.657.077.758.997.56.997.398.069.278.07.347.728.369.56

We will use the table provided in exhibit 7-7 to answer this question.

If an adjustable-rate 20-year mortgage for $129,000 starts at 6.0 percent and increases to 6.5 percent, what is the increase in the monthly payment amount? Use Exhibit 7-7. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

If an adjustable-rate 20-year mortgage for $129,000 starts at 6.0 percent and increases to 6.5 percent, what is the increase in the monthly payment amount? Use Exhibit 7-7. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 11E

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

If an adjustable-rate 20-year mortgage for $129,000 starts at 6.0 percent and increases to 6.5 percent, what is the increase in the monthly payment amount? Use Exhibit 7-7. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Monthly payment increase

Exhibit 7-7
Term Rate
30 Years
25 Years
20 Years
15 Years
Mortgage Payment
$4.22
$4.74
$5.55
$6.91
3.0%
Factors (principal
3.5
4.49
5.01
5.80
7.15
and interest factors
4.0
4.77
5.28
6.06
7.40
per $1,000 of loan
4.5
5.07
5.56
6.33
7.65
amount)
5.0
5.37
5.85
6.60
7.91
5.5
5.68
6.14
6.88
8.17
6.0
6.00
6.44
7.16
8.44
6.5
6.32
6.75
7.46
8.71
7.0
6.65
7.07
7.75
8.99
7.5
6.99
7.39
8.06
9.27
8.0
7.34
7.72
8.36
9.56

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