FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
6th Edition
ISBN: 9781260529326
Author: Kapoor
Publisher: McGraw-Hill Publishing Co.
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Chapter 7, Problem 2RLPF
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To discuss: The ways Person B find mortgage rates were at a level that would make refinancing affordable.
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How is a home mortgage an example of Time Value of Money? What would you expect the impact of varying terms (years needed to pay off the loan) and rates to be using TVM rules? Why do homeowners sometimes refinance their mortgages?
I need th answer for this multiple choice question and please give a short explanation about your answer:
Why an increase in the interest rate reduces residential investments?a. because mortgage becomes cheaper.b. because it negatively affects housing demand.c. because it reduces the opportunity cost of residential investments.d. because it increases the relative price of housing.
Introduction: what mortgage points are and why people choose to opt-in for it ?
what the advantages and disadvantages of using a mortgage point is ?
And give an example using numbers present value and future value?
Make a report.
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FOCUS ON PERSONAL FINANCE LL/ACCESS >BI
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- How can i get the best mortgage rates ?arrow_forwardWhat is a nonrecourse loan? Will a nonrecourse loan given by the seller of real estate to the buyer increase the amount the buyer has at risk? Explain.arrow_forwardDoes the levered IRR meet the tenant's stated required yield? Note: - This is the metric you use to answer the question, "Is it better for the tenant to lease or buy with mortgage financing? - If the levered IRR exceeds her required yield, then she is better off buying with a mortgage instead of leasing. If it less than her hurdle rate, then she should renew the lease instead of buying.arrow_forward
- Discuss whether a Mortgage Reducing Term Takaful can be taken for coverage ofa conventional housing loan? (Recommend that you support your answers withproper Shariah evidence)arrow_forwardDiscuss mortgage loans in terms of the time value of money and loan amortization. What important points should every homeowner know about how mortgages work? (Hint: Think about taxes and getting the mortgage paid off. Please explain this as simply as possible to me.arrow_forwardIf you were applying for a home mortgage loan today, would a lender viewyour debt-to-assets ratio favorably? Why or why not?arrow_forward
- Given the role of the loan originator in the securitization process of a mortgage loan described in the text,do you think the loan originator will be worried aboutthe ability of a household to meet its monthly mortgagepayments?arrow_forwardSuppose you had the exact amount of money to buy your dream property. Would you pay cash or get a mortgage? Why? If it's relavent to your answer you can state a dollar amount and explain with numbers not words.arrow_forwardExplain at least two benefits of using a real estate broker. What is private mortgage insurance? How does it work to protect a lender from risk? What are the three 'C's' of mortgage underwriting? What is one way in which each of the 'C's' is measured? What is the APR? Discuss at least two concerns that the APR does not capture the full costs of a mortgage.arrow_forward
- The figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs but results in a lower monthly payment. Which best describes the lines?arrow_forwardThe figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs, but results in a lower monthly payment. Which best describes the lines? A) the blue line is for refinancing, which start cheaper but eventually is costlier B) the blue line is for refinancing, which starts costlier but eventually is cheaper B) the orange line is for refinancing, which starts cheaper but eventually is costlier D) the orange line is for refinancing, which starts costlier but eventually is cheaperarrow_forwardThe figure below shows costs for a current home mortgage versus a refinanced home mortgage. Refinancing has initial costs, but results in a lower monthly payment. Which best describes the lines? ***SEE CHART**** The blue line is for refinancing, which starts cheaper but eventually is costlier The blue line is for refinancing, which starts costlier but eventually is cheaper The orange line is for refinancing, which starts cheaper but eventually is costlier The orange line is for refinancing, which starts costlier but eventually is cheaperarrow_forward
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