Sherry Smart is buying a $350,000 home and will pay the mortgage monthly for 30 years. She has a good credit score and has qualified for a 5.125% loan interest. How much will she be paying monthly for the home?   a. $2,013.67   b. $1,572.72   c. $975.88   d. $1,318.69

Q: Suppose Allison purchases a condominium and secures a loan of $134,000 for 30 years at an annual…

A: Loan amount (X) = $134000 Number of payments (n) = 30 * 12 = 360 r = 6.5% per annum = 0.54167% per…

Q: Stephen has just purchased a home for ​$151,000. A mortgage company has approved his loan…

A: EMI or monthly mortgage payments are the fixed amount paid by the borrower to the lender that…

Q: A woman buys a house for ​$235,000. She pays ​$60,000 down and takes out a mortgage at 6.3​% on the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Can you show me how this is done?   Ava Darling plans to buy a home and can deposit $1,703 per…

A: The expected down payment will be equal to the future value of the 5 annual deposits.

Q: s are purchasing a $240,000 home with a 30-year fixed mortgage at an APR of 4.5%. They made a 10%…

A: Mortgages are paid by the monthly payments that carry the payment for the loan and interest rate.…

Q: Janet is purchasing a new house for $315,000. Her credit union requires her to make a 20% down…

A: Using Excel PMT function

Q: What is the mortgage debt ratio for a potential borrower who earns $72,000 per year if she applies…

A: Calculation for mortgage debt ratio are as follows.

Q: A woman buys a house for $290,000. She pays $60,000 down and takes out a mortgage at 6.9% on the…

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

Q: Andy takes out a 15-year mortgage of 125000 dollars to purchase a home. If the interest rate is 6.9…

A: 125000Loan amount (PV) = $ 125000 125000 Number of monthly payments (M) = 180 Annual interest rate =…

Q: Stephen has just purchased a home for $153,200. A mortgage company has approved his loan application…

A: The future value of the loan is the accumulated amount of money at present with some interest rate.…

Q: Clark and Lana take a 30-year home mortgage of $125,000 at 7.6%, compounded monthly. They make their…

A: Loan Repayment Concept

Q: nna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 20%…

A: We need to use loan amortization formula to calculate monthly payment. The formula is  PMT…

Q: Dagmar has a 4-year car loan at an annual interest rate of 4.5%. She has made 28 payments of…

A: Pay-off amount: The amount which satisfies all the terms of the loan and completely write-off the…

Q: Harvey and Esmeralda's combined gross income is $75,000, and their monthly consumer debt is $558.…

A: Monthly payment is calculated by EMI formula, where the present value is loan. r is interest rate…

Q: Syvia bought a house for $300,000 with an installment loan for 30 years (360 monthly payments).…

A: Loan Amount(PV) is $300,000 Nominal interest rate is 4% Time Period is 30 years or 360 months   To…

Q: Angelina is buying a home for $208,000. She has a $37,000 down payment and the bank b offered her a…

A: Loans are paid by the monthly payments and these are equal monthly installments and these carry the…

Q: A woman buys a house for $265,000. She pays $70,000 down and takes out a mortgage at 6.6% on the…

A: Mortgage amortization refers to a schedule which is prepared to shows the periodic loan payments,…

Q: A woman buys a house for $290,000. She pays $60,000 down and takes out a mortgage at 6.9% on the…

A: House Purchase Price = 290,000 Down Payment = 60,000 Loan Amount = House Purchase Price - Down…

Q: Donald and Alex have a combined gross monthly income of $5500. They want to buy a house in a…

A: Maximum monthly mortgage payment refers to the amount that an individual has after considering all…

Q: Sonia buys a house for $250,000. she makes a down payment of 15% of the purchase price and takes a…

A: Cost of house = $ 250,000 Down payment = 15%

Q: Bill and Kim Johnson are purchasing a house for $263,000. Their bank requires them to pay a 20% down…

A: A mortgage refers to a loan used to buy or maintain and repair a building, land, or other real…

Q: Mye has a 15-year mortgage loan at a compounded annual interest rate of 9.3%. After making annual…

A: Given that: Annual Cash flow=P11600 N=7 Years=7*12=84 Months r=9.3% annually= 0.93/12 Monthly =0.775…

Q: Will has a 30-year mortgage on a $100,000 loan for his house in Florida. The interest rate on the…

A: Mortgage is long-term amortized loan contract which used to but fixed assets, generally home.…

Q: Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year fully amortizing…

A: Building Cost  $     10,00,000.00 LTV 80% Interest Rate 4% Time Period 30 Balloon Payment…

Q: Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 15%…

A: Mortgage Payment. The amount that the Borrower is expected to pay in respect of its Mortgage Loan on…

Q: A woman buys a house for $325,000. She pays $20,000 down and takes out a mortgage at 6.9% on the…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Four years ago, Emily secured a bank loan of $200000 to help finance the purchase of an apartment in…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Heather recently purchased a $650,000.00 house in Barrie, Ontario. She puts a 25% down deposit and…

A: A fixed rate mortgage is a type of mortgage in which interest rate does not vary and remains…

Q: A family needs to take out a 15-year home mortgage loan of $100,000 through a local bank. Annual…

A: Monthly payment It is the minimum amount that is paid by the person every month who has taken a…

Q: nt a.)If his new home costs $136,000, what is his down payment? b.)How much is he going to borrow…

A: PMT function computes installment amount for given interest rate (RATE), no. of installments (NPER)…

Q: 4.Ben and Jen are looking at a home that has an annual property tax of $3700 and an average heating…

A: GDSR is the Gross debt service ratio. The maximum GDSR should not exceed 32%. Annual property tax…

Q: When Sara Jean purchased her house 12 years ago, she took out a 30-year mortgage for $220,000. The…

A:

Q: A couple completely owns one home but is purchasing a second home for $120,000. They will put down…

A: Since more than one question are posted at a time the answer for first question is only provided as…

Q: Stephen has just purchased a home for $154,000. A mortgage company has approved his loan application…

A: Introduction Mortgage: A mortgage is a form of loan that can be used to purchase or refinance a…

Q: Anna is buying a house selling for ​$285,000. To obtain the​ mortgage, Anna is required to make a…

A: a - The amount of the required down payment = 15% of House Purchase Price…

Q: J. D. Homeowner has just bought a house with a 20-year, 9%, $70,000 mortgage on which he is paying…

A: Given information: Mortgage loan is $70,000 Interest rate is 9% Maturity is 20 Monthly payment is…

Q: 1- Jacinda Herschel wants to buy a car and determines she can afford to pay $412.00 a month for a…

A: Given: Particulars Amount Payment(PMT) $412 Years 3 Interest rate 2.95%

Q: Anna is buying a house selling for $255,000. To obtain the mortgage, Anna is required to make a 15%…

A: Mortgage amount can be calculated as excess of total house cost over and above the amount of down…

Q: Carlos is considering purchasing a new home. His banker has presented a 15-year mortgage at a fixed…

A: Before writing pmt function in excel we need to understand the following  Rate can be written as…

Q: Ben and Mal Scott plan to buy a home for $272,900. They will make a 10% down payment and qualify for…

A: Purchase price of a property can be defined as the amount that should be paid to acquire a property.…

Q: Clark and Lana take a 30-year home mortgage of $123,000 at 7.7%, compounded monthly. They make their…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 1. Renalda has purchased a condominium and received a mortgage loan in the amount of $50,000 for 25…

A: Given: Loan amount = $50,000 Years = 25 Monthly loan payment = $510.55 Interest rate = 11.9%

Q: Stephen has just purchased a home for $162,000. A mortgage company has approved his loan application…

A: Mortgage is a value which a person borrowed from the sources like bank and repay it later with extra…

Q: Stephen has just purchased a home for $146,000. A mortgage company has approved his loan application…

A: Price of home = $146000 Yearly rate of interest(r) = 4.75% = 0.0475 Total Years = 30 Downpayment =…

Q: Ann wants to buy an office building which costs $1,000,000. She obtains a 30 year partially…

A: Building Cost  $     10,00,000.00 LTV 100% Interest Rate 7% Time Period 30 Balloon Payment…

Q: James has a mortgage of $88,500 at 8% for 15 years. The property taxes are $3,700 per year, and the…

A: First  we need to calculate monthly payment of interest and principal that is known as PMT by using…

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.