Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it  financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $194,000 home if you put 30% down and financed the remaining amount with a 30-year mortgage at 5.5% interest compared to a 30-year mortgage at 3.5% interest? (Use the amortization worksheet.)

Q: You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: a.

Q: You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 7% interest. a)…

A: Present value of annuity is value of future recurring cashflow discounted to current date at…

Q: Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it…

A: Mortgage refers to long-term amortized loan taken from financial institution for buying fixed asset…

Q: You can afford a $850 per month mortgage payment. You've found a 30 year loan at 8% interest. a) How…

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

Q: For a $100,000 mortgage for 25 years at a 11.5% rate (monthly payments), find   4) If 8.685 points…

A: We need to use excel RATE function to calculate yield to lander. The formula is…

Q: Suppose you had to choose between a 9% 25-year mortgage or a 8.5% mortgage with 2 discount points.…

A: The discount points in mortgages are the points that can classify into borrower and lender points.…

Q: For a $100,000 mortgage for 25 years at a 11.5% rate (monthly payments), find 1) the monthly…

A: Given information : Note : As per the guidelines, only first three parts will be answered.

Q: Use PMT = to determine the regular payment amount, rounded to the nearest cent. The cost of a home…

A: Cost of House is $110,000 Time period is 20 years or 20×12=240 months Interest rate is 3%  Monthly…

Q: Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it…

A: Given: Loan $195,000  Down payment = 20% Financed balance = 30 years Interest rate = 6% Another…

Q: Use -to determine the regular payment amount, rounded to the nearest dollar. Consider the following…

A: Mortgage A Mortgage B Loan Amount   $                                       1,65,000.00  $…

Q: You currently have an existing mortgage with Bank of America: Outstanding loan amount: $230,000 •…

A: It is always desirable to switch your mortgages to a lower rate of interest. A lower rate of…

Q: You are looking to buy a $275,599.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: You can afford a $1000 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: a) Hence, the size of loan is $166,791.61. b) Hence, the total money to be paid is $360000.

Q: You can afford a $1350 per month mortgage payment. You've found a 30 year loan at 8% interest.a) How…

A: Part a-c:Calculation of Size of Loan, Total Money to be Paid and Total Interest:a) The size of loan…

Q: Your current mortgage payment is $1,558.50 per month, with a balance of $217,800. Suppose you have a…

A: Mortgage is a loan contact used to buy capital assets such as houses. In Mortgages, title of asset…

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: given, pmt = $1400 m = 30 years  r = 8%  applying formula for pmt: pmt=loan amount…

Q: You apply for a home-equity loan. You have a first mortgage, with a current balance of $213,800.…

A: Since your currant mortgage balance of $213,800 . The line of credit you will get on home loan…

Q: Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it…

A: Given that  amount of loan : $ 195000 mortgage for 30 years

Q: 2. A mortgage has the following terms: Amount: Rate: Amortization (Years): $750,000 1-5? 6.25% 30…

A: Loan is a facility under which the borrower gets a lump-sum amount and repays it in small regular…

Q: PA Use to determine the regular payment amount, rounded to the nearest dollar. Consider the…

A: The repayment of a loan: A long-term fixed mortgage on a house is usually repaid with equal monthly…

Q: Suppose you take a 10-year mortgage for a house that costs $252,923. Assume the following: The…

A: mortgage amount =252923 Down payment =10% Down payment =25292.30 mortgage amount =252923-25292.30…

Q: You have been given the choice to reduce your mortgage interest rate for each point received by the…

A: The answer is stated below:

Q: You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8% interest a) How…

A: Monthly payment (P) = $ 800 Period = 30  Years Number of monthly payments (n) = 30*12 = 360 Annual…

Q: borrow $400,000 from Bank of America on a 30-year mortgage at 6% interest rate. a. What would Tim's…

A: The given problem can be solved using PMT function in excel. PMT function computes installment…

Q: You have been given the choice to reduce your mortgage interest rate for each point received by the…

A: Money which has been borrowed needs to be repaid to the lender along with the interest payments…

Q: 2. If the interest rate on a 30-year mortgage is fixed at 4% and if a monthly payment of $900 is the…

A: given, n=30 years r=4% m=12 A=$900

Q: Based on the following scenario, how much is the monthly savings when comparing a conventional loan…

A: Due to insurance the interest rate being charged is lowered by banks due to safety of repayment.

Q: Phil Pittman is interested in a fixed-rate mortgage for $200,000. He is undecided whether to choose…

A: Loan amount = $200,000 15-year mortgage monthly payment = $1529.99 or $1530 (round to nearest…

Q: You can afford a $900 per month mortgage payment. You found a 30-year loan at 7% interest. How big…

A: The present value of an annuity is the current worth of a cash flow series at a certain rate of…

Q: Please show working You get a 15 year, 3.5% fixed-rate mortgage with one point, borrowing $300,000.…

A: Assumption: since question doesn't specify the payment frequency, we will assume that the payments…

Q: Finance A borrower takes out a 30-year mortgage loan (with monthly payments) for $300,000 with an…

A: A discount point: A discount point is earned by paying 1% of the mortgage value. It typically…

Q: Which mortgage would result in higher total payments? Mortgage A: $985 a month for 30 years Mortgage…

A: Total Payment = Monthly Payment * No. of months

Q: Suppose you earn a gross income of $2,920.00 per month and apply for a mortgage with a monthly PITI…

A: Housing Expense Ratio(HER) is computed by dividing total expenses related to house by income for…

Q: Assume that a broker agent introduces you to a local bank, and that bank offers you their lowest…

A: we need to use loan amortization formula given below for calculation of monthly payment PMT…

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

A: Please find the answer to the above question below:

Q: Suppose you earn a gross income of $2,710.00 per month and apply for a mortgage with a monthly PITI…

A: Gross income (G) = $2710 Monthly PITI (P) = $501.35 Other obligations (O) = $428.18

Q: You can afford a $1150 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: A loan is an amount of money or funds that are borrowed by a borrower. The loan represents the…

Q: You currently have an existing mortgage with Bank of America: . Outstanding loan amount: $230,000 •…

A: Mortgage loan is the loan taken up by the customers from the bank to purchase a home. Prepayment…

Q: You want to buy a $212,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan…

A: a) Amount of down payment = cost of house * % of down payment

Q: WHAT WOULD BE THE TOTAL INTEREST PAID ON  THE LIFE OF A 30 YEAR FIXED MORTGAGE WITH 20% DOWN AT A…

A: Note: Assuming payment is made every month. Given:Value of House = $70,000Down-payment = 20% =…

Q: You have located a warehouse property to purchase at a price of $320,000. You plan to make a 20%…

A: Commercial mortgage loans are obtained by business entities for acquiring office buildings, malls,…

Q: You are looking at a one-year loan of $20,000. The interest rate is quoted as 10 percent plus 2…

A: To calculate the actual rate first we need to calculate the  net amount of loan .   Net amount of…

Q: You can afford a $1100 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: A. GIVEN, MONTHLY PAYMENT (A) = $1100 TERM OF LOAN (n) = 30 YEARS INTEREST (R)=8% FREQUENCY OF…

Q: Phil Pittman is interested in a fixed-rate mortgage for $300,000. He is undecided whether to choose…

A: Mortgage amount =$300000 interest rate =8% Period =15 years.

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.