To buy an $180,000 condominium, you put down $30,000 and take out a mortgage for $150,000 at an APR of 9% compounded monthly. Five years later, you sell the house for $205,000 (after all selling expenses are factored in). What equity (the amount that you can keep before any taxes are taken out) would you realize with a 30-year mortgage repayment term? (Assume that the loan is paid off when the condo is sold in lump sum.)
Q: If you borrowed $200,000 to buy a house at 6% interest per year, compounded annually, and paid back…
A: Given information: Loan = $200,000 Number of years = 30 Compound interest rate = 6% compounded…
Q: Suppose you are buying your first condo for $180,000, and you will make a $15,000 down payment. You…
A: Condo price = $ 180,000 Down payment = $ 15000 Loan amount(P) = Condo price-Down payment…
Q: Suzan Long is considering buying a home for$350,000.(a) If she makes a down payment of $50,000…
A: In this problem, a person purchases a home for $350,000 and make down payment of $50,000. The…
Q: The Taylors have purchased a $150,000 house. They made an initial down payment of $30,000 and…
A: House price = $150,000 Down Payment = $30,000 Time Period = 30 Years Interest Rate = 9%
Q: 1)You have taken out a loan of 3,000,000 to buy an apartment. The loan is an annuity loan of 30…
A: The loan is a facility provided by financial institution to buy an asset and repay it in future in…
Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 4.84% interest. Suppose…
A: PMT function gives the payment for the loan for the constant payment and the constant rate of…
Q: You buy a house for $328,000, make a $33,000 down payment, and take out at 15-year mortgage at an…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…
Q: Your firm has taken out a $480,000 loan with 8.1% APR (compounded monthly) for some commercial…
A: The loans are paid the monthly payments that carry the payment for interest and the payment for the…
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: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…
A: Computation as follows:
Q: Suppose you want to purchase a home for $525,000 with a 30-year mortgage at 5.44% interest. Suppose…
A: Note: No intermediate rounding is done for successive parts as well. Value of house = $525,000…
Q: Suppose you want to purchase a home for $425,000 with a 30-year mortgage at 5.84% interest. Suppose…
A: 30 years 15 years Purchase of house 425000 425000 Downpayment(25%) 106250 106250 Amount…
Q: You have planned to have $40,000 at the end of 10 years to place a down payment on a condo. Property…
A: We have:Down Payment on property : $40,000Property Taxes and Insurance: 25% of monthly principal and…
Q: You decide to buy a house costing $6,000,000. You pay $1,000,000 down, and the remainder will be…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: What is the total amount paid for principal and interest? (Round your answer to the nearest cent.) $…
A: Information Provided: Price = $475,000 Term = 30 years Interest = 5.54% Down payment = 25%
Q: An engineer purchases a house using only a loan borrowed from a local bank. The loan is offered at…
A: A study that proves that the future worth of the money is lower than its current value due to…
Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…
A: PV of annuity: For any given period, the present value (PV) formula would calculate the present…
Q: A house is being purchased for $138,000.00. The 30-year mortgage has a 10% down payment, an interest…
A: The cost of financing the house will include the total cost of interest for the period of loan is…
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: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…
A: Computation as follows: Down payment: Hence, the down payment is $17000. Mortgage loan: Hence, the…
Q: You bought a house worth $326,000. You paid 25% of the purchase price in cash and arranged a 30…
A: A mortgage loan is a type of secured loan that you can avail of by keeping an immovable asset as a…
Q: You would like to buy a house that costs $350,000. You have $50,000 in cash that you can put down on…
A: The question is based on the concept of Loan and mortgages
Q: If you took out a 30-year loan to buy a house for $1 million at an interest rate of 5%, how much…
A: The present value of monthly payments should equal the loan value.
Q: Suppose you take out a 45-year $125,000 mortgage with an APR of 6%. You make payments for 5 years…
A: Original loan = $125,000 APR = 6% New loan APR = 5.2%
Q: The MacEacherns wish to buy a new house that costs $279,000. The bank charges 5.25% interest. A)…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You purchase a home for $350 000. At the time of purchase you make a downpayment of $75 000. The…
A: Loan amount (L) = $350000 - $75000 = $275000 n = 25 years = 300 months Interest rate = 4.3%…
Q: Your company has determined it can and is willing to pay a monthly mortgage payment of $12,000 (per…
A: Maximum amount the company can pay is present value of monthly payments
Q: Suppose that you wish to buy a new home that will cost you $476,301. You must put $80,000 down, and…
A: Negative amortization is where the principal to be paid increases due to non payment of interest due…
Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a…
A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000
Q: Suppose that 10 years ago you bought a home for $150,000, paying 10% as a down payment, and…
A: It is assumed that repayments are made on annual basis.The purchase amount of home is $150,000. 10%…
Q: You buy a house for $330000, and take out a 30-year mortgage at 6.5% interest. For simplicity,…
A: Mortgage amount= $330000 Time= 30 year Rate of Interest= 6.5% compounds continuously
Q: Susan Bentley will purchase a home for $257,000. She will use a down payment of 20% and finance the…
A: Installment is the amount of periodic payments a borrower makes to its lender in order to pay back…
Q: You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 31-year…
A: The annual interest rate that is charged by the lenders or at which the investors earn additional…
Q: You want to purchase a new condominium that costs $285,000. Your plan is to pay 30 percent down in…
A: A written agreement through which a lender gets the right to take the property that is put as a…
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: If a house cost $110,000 and you put down 20% for a down payment and your interest rate is 3.5%…
A:
Q: You decide to buy a house costing $400,000. You pay $100,000 down, and the remainder will be paid in…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Suppose you purchase a house for $200,000.00 by getting a mortgage for $180,000.00 and paying a…
A: Present value refers to the current valuation for a future sum. Investors determine the present…
Q: You are looking to buy a $415,000.00 home in Haverhill. If Bank of America will give them a 30-year…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: You need a 30-year, fixed-rate mortgage to buy a new home for $400,000. Your mortgage bank will lend…
A:
Q: Suppose that 10 years ago you bought a home for $170,000, paying 10% as a down payment, and…
A: Down payment: Hence, the down payment is $17000. Mortgage loan: Hence, the mortgage loan is…
Q: the price of a house is $400,000. Then, you make a down payment of $130,000 and take a 30-year…
A: Price = $ 400,000 Down payment = $ 130,000 Period = 30 Years Number of monthly payments = 30*12 =…
Q: You borrowed $600,000 from a bank at an interest rate of 70% compounded quarterly to purchase a new…
A: A loan is an amount borrowed by one person from another person at a pre-determined interest rate.…
Q: You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest.…
A: Time value tells that money received today has more value than that of receiving the exact value…
To buy an $180,000 condominium, you put down $30,000 and take out a mortgage for $150,000 at an APR of 9% compounded monthly. Five years later, you sell the house for $205,000 (after all selling expenses are factored in). What equity (the amount that you can keep before any taxes are taken out) would you realize with a 30-year mortgage repayment term? (Assume that the loan is paid off when the condo is sold in lump sum.)
Step by step
Solved in 2 steps with 2 images
- Suppose you take out a $117,000, 20-year mortgage loan to buy a condo. The interest rate on the loan is 5%. To keep things simple, we will assume you make payments on the loan annually at the end of each year. a. What is your annual payment on the loan? b. Construct a mortgage amortization. c. What fraction of your initial loan payment is interest? d. What fraction of your initial loan payment is amortization? e. What is the total of the loan amount paid off after 10 years (halfway through the life of the loan)? f. If the inflation rate is 3%, what is the real value of the first (year-end) payment? g. If the inflation rate is 3%, what is the real value of the last (year-end) payment? h. Now assume the inflation rate is 6% and the real interest rate on the loan is unchanged. What must be the new nominal interest rate? i-1. Recompute the amortization table. i-2. What is the real value of the first (year-end) payment in this high-inflation scenario? j. What is the real value of the last…You have just taken out a mortgage of $50,000 for 30 years, with monthly payments at 6% interest. The same day you close on the mortgage you receive a $25,000 gift from your parents to be applied to the mortgage principal. What amount of time will now be required to pay off the mortgage if you continue to make the original monthly payments? What is the amount of the last payment? (Assume any residual partial payment amount is added to the last payment.)You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)
- To buy a new house, you must borrow $140,000. To do this, you take out a $ 140,000, 30-year, 9 percent mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principal and 9 percent interest on the declining balance. How large will your annual payments be?You are thinking of purchasing a house. The house costs $300,000. You have $43,000 in cash that you can use as a down payment on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 7% per year. What will be your annual payment if you sign this mortgage? The annual payment is $__________________________ (Round to the nearest dollar.)You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the maximum principal you can borrow? $ b) Instead of a home, you decide to buy a duplex and rent out the other side for $500 a month. With this additional $500 added to your monthly payment, what is the maximum principal you can borrow? c) You buy a duplex for the amount of your answer in part (a), but apply the extra $500 to the mortgage (making your payment $1,500). How long does it take to pay off this loan in years? years
- Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) The discount rate is% per month. (Round to five dccimal places.)Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $750,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 6.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) Question content area bottom Part 1 The discount rate is enter your response here% per month. (Round to five decimal places.) Part 2 The monthly mortgage payment is $enter your response here. (Round to the nearest cent.) Part 3 The remaining balance is $enter your response here. (Round to the nearest dollar.) Part 4 The cash that remains after payoff of the mortgage is $enter your response here. (Round to the nearest dollar.)Your have just sold your house for $1,000,000 in cash. Your mortgage was originally a 30-year mortgage with monthly payments and an initial balance of $800,000. The mortgage is currently exactly 18.50 years old, and you have just made a payment. If the interest rate on the mortgage is 5.25% (APR), how much cash will you have from the sale once you pay off the mortgage? (Ignore any real estate transaction costs.) .…. The discount rate is % per month. The monthly mortgage payment is $ The remaining balance is $ (Round to the nearest dollar.) The cash that remains after payoff of the mortgage is $ (Round to five decimal places.) (Round to the nearest cent.) (Round to the nearest dollar.)
- Suppose that you purchased a house with a $140,000 mortgage (30-year fixed at 6% with a payment of $839.37) five years ago. The loan balance is currently $130,276 and you can refinance that balance at 5% with a new 30-year fixed rate mortgage. You anticipate being in the house for another six years, at which point the balance on your current mortgage would be $114,032. If you refinanced at the terms above, what would be the difference in the loan balances? O $1,329 O $1,871 O $2,471 O $3,132 O $3,860 2When you purchased your house, you took out a 30-year mortgage with an interest rate of 4.8% per year. The monthly payment on the mortgage $5,557. You have just made a payment and have now decided to pay off the mortgage by repaying the outstanding balance. What is the payoff amount if you have lived in the house for 20 years (so there are 10 years left on the mortgage)? Payoff amount is $____. (Round to the nearest dollar.)you are buying a house and will borrow $225,000 on a 30-year fixed reate mortgage with monthly payments to finance the purchase. your loan officer has offered you a mortgage with an APR of 4.3%. Alternatively, she tells you that you can “ buy down ” the interest rate to 4.05% if you pay points up front on the loan is 1 % ( one percentage point) of the loan value. you believe that you will live in the house for only eight years before selling the house and buying another house. this means that in eight years, you will pay off the remaining balance of the original mortgage. how many points, at most, would you be willing to pay to buy down the interest rate? Question) maximum points?