You have been shopping for a new home. You have the choice of financing for your $300,000. You can choose either a 4.5% 30 year loan or a 5% 15 year loan. A) Assuming you take out the mortgage at age 30 - prepare the amortization schedule for each situation. B) Highlight the payment period when the interest flips on the 15 year note? On the 30? C) At age 45 when you pay off the 15 year mortgage, you decide to invest your previous monthly mortgage payment in a mutual fund earning 6% annually. What is the value of this investment at age 62 (17 years later)?

Q: Explain which is the better option.

A: Information Provided: House costs = $100,000 Down payment = $25,000 Option A = 3% APR for 20 years…

Q: The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of 6.8%.…

A: The question can be solved in excel as follows:

Q: You bought your house five years ago and you believe you will be in the house only about five more…

A: The calculation is:

Q: Bonnie and Claude want to buy a house. They can afford monthly payments of $1125.00. The bank offers…

A: The maximum amount that the bank will lend will be the present value of the monthly payments that…

Q: The Mendez family is considering a mortgage loan of 349,500$ at an annual interest rate of 6.6%.  a)…

A: The equivalent annual cost is the periodic payment made towards the acquisition of an asset or…

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: Peter wants to buy a house in Edmonds that costs $400,000. He plans to pay $100,000 as a…

A: given, price = $400,000 downpayment = $100,000 n =10  r=10% m=12

Q: A while ago, a couple purchased a home with a sales price of $810,000, making a 5% down payment and…

A: Annual worth distributes present worth into equivalent uniform value over its useful life.

Q: You are considering purchasing a new home. You will need to borrow AED 4,000,000 to purchase the…

A: Monthly Payment refers to the payment that is to be paid monthly for a specific period of time to…

Q: Dan is considering borrowing $489,000 to purchase a new condo. Based on that information, answer the…

A: The question is based on the concept of the mortgage loan. A mortgage loan is a secured loan, which…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: You have decided to buy a 3,250 square-feet house in Denton, close to a good public school.  The…

A: Given, Area of house = 3250 square feet Average price per square feet = $190 Bank finance = 80%…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: A mortgage is a loan on a property where the collateral is the property itself.

Q: You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local bank.…

A: Discount points refer to the optional fees (extra charges) over the agreed stated interest rate on a…

Q: You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A…

A: Purchase cost of Home = 280,000 Years = 20 APR= 9%   Find out PMT

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…

A: Amount to be financed = Cost of house - Down payment = $415,000 - ($415,000*20%) = $332,000 Nos of…

Q: Jackson is looking to purchase a condo. He is looking to have a conventional mortgage as he does not…

A: The number of months required can be computed by using the NPER function of Excel

Q: You want to purchase a house for $85,000, and you have $17,000 cash available for a down payment.…

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

Q: You agree to purchase a home for $150,000 and decide to make a 20% down payment on the home.  You…

A: Please see the next step for the solution

Q: A borrower has secured a 30 year, $730,000 loan at 5%. 15 years later, the borrower has the…

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

Q: Your parents buy a new house to downsize. They pay $250,000 and are planning on paying it off in a…

A: Let interest rate implicit in loan = i Present value of installment at i = $250,000 $19,167 *…

Q: A family wants to purchase a house that costs $135,000. They plan to take out a $125,000 mortgage on…

A: Data given: Monthly payment for 15 year mortgage= $718.77 Monthly payment for 30 year mortgage= $…

Q: Suppose you are buying your first home for $144,000, and you have $17,000 for your down payment. You…

A: purchasing price = $144,000 down payment = $17,000 loan amount = $144,000 - 17,000…

Q: You take out a 20-year $280,000 mortgage loan with an APR of 6% and monthly payments. In 16 years…

A: Loan amount = $ 280,000 Annual interest rate = 6% Monthly rate = 6%/12 = 0.50% Loan period = 20…

Q: Jason is buying a home with a $150,000 mortgage using a 6 percent, 15-year loan. How much of the…

A: Loan amortization schedule represents the amount of periodic payments composed of the interest…

Q: Jim Thorpe borrows $70,000 toward the purchase of a home at 12 percent interest. His mortgage is for…

A: Solution- Part 1- A=PV/APV IFA12%,30 years    =$700008.055     =$8,690.25Annual payment=$8,690.25

Q: Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the…

A: In order to manage the finance effectively, the business entity raises the funds from external…

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: he McBertys have $30,000 in savings to use as a down payment on a new home. They also have…

A: The question is based on the concept of mortgage loans. The mortgage loan is a secured type of loan…

Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 15-year…

A: Monthly Payment = $2,333

Q: Johnny and Lucy have purchased a home for $365,000. They will need to obtain a mortgage for 85% of…

A: Loan amortization table shows the bifurcation of each monthly payment in the interest payment and…

Q: A couple who wants to purchase a home with a price of $340,000 has $100,000 for a down payment. If…

A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…

Q: You purchase a home costing $480,000 with a 20% down payment. After shopping around for a mortgage,…

A: Thus, Monthly Payment in option 1 is $1583.32 and in Option 2 is $1586.07

Q: A while ago, a couple purchased a home with a sales price of $780,000, making a 5% down payment and…

A: Monthly paymentThe minimum value that is needed to be paid each month by an individual for a stated…

Q: A year ago, a newly married couple decided not to buy a house, and they were looking at a house with…

A: Since you have posted a question with multiple sub parts, as per answering guidelines we shall be…

Q: Dan is considering borrowing $375,000 to purchase a new condo. Based on that information, answer the…

A: Amortization of loan- is a process to reduce the loan amount by regular payment of principal and…

Q: An individual wishes to purchase a house that is selling for $200,000. The person has $50,000 they…

A: Value of house = $200000 Down payment = $50000 Term for amortization "n" = 10 years or 10*12 = 120…

Q: You want to purchase a home for $747,555 in South Calga at BMO has informed you that the rate on…

A: Mortgage payment are made monthly payment that carry payment of principal amount and interest…

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: Dan is considering borrowing $500,000 to purchase a new condo. Based on that information, answer the…

A: Amortized Loan:  Amortized loan is a type of loan in which the borrower would pay periodic payments…

Q: You plan on borrowing $320,000 for a mortgage and are considering the following two loan options: a…

A: Using excel PMT function

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: Justin and Hayley are interested in a fixed-rate mortgage for $450,000. They are undecided whether…

A: given data  fixed rate mortgage = 450,000 current mortgage rate = 3.5% for 15 years current mortgage…

Q: A new family who wants to purchase a home with a price of $250,000 has $50,000 for a down payment.…

A: Here, Purchase price = $250,000 Down payment = $50,000 Interest rate = 3.50% Term of loan = 15 years…

Q: You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A…

A: A written agreement through which a lender gets the right to take the property that is put as a…

Q: You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A…

A: A mortgage is a long-term loan designed to help you buy a house. In addition to repaying the…