Ben and Mal Scott plan to buy a home for $272,900. They will make a 10% down payment and qualify for a 25-year, 7% mortgage loan. a. What is the amount of their monthly payment? Home price = Percent down = Amount financed = Number of 1000s financed = 7%, 25-year table factor = Monthly payment = | b. How much interest will they pay over the life of the loan? Number of payments = Total interest =

Ben and Mal Scott plan to buy a home for $272,900. They will make a 10% down payment and qualify for a 25-year, 7% mortgage loan. a. What is the amount of their monthly payment? Home price = Percent down = Amount financed = Number of 1000s financed = 7%, 25-year table factor = Monthly payment = | b. How much interest will they pay over the life of the loan? Number of payments = Total interest =

PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)

6th Edition

ISBN:9781337117005

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 4FPE

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QUESTION 19 Clark and Lana take a 30-year home mortgage of $128,000 at 7.8%, compounded monthly. They make their regular monthly payments tor 5 ymars, then decide to pay $1300 per month. Match the question with the answer there are more answers than questions. v What is their regular monthly payment? What is the unpaid balance when they begin paying the $1300? How many payments of $1300 will it take to pay off the loan? How much interost will they save by paying the loan this way? AS11,789.16 B. 144.27 monthly payments C.$ 242,841.08 D. S 88,874,36 ES 331,716.33 F $ 921.43 G. 76.35 monthly payments H. S 89.43 1$121.462.80
Question 11 The cost of a home you want to purchase is $250,000.00. To qualify for a mortgage, your lender wants a 20% down payment. Your mortgage interest rate is 7% for 20 years and you have to pay 3 points. A. How much money do you need for the down payment? for the down payment. I need B. How much will your mortgage be? My mortgage amount will be C. How much will you have to pay for the points? I will have to pay D. What is the monthly payment? My payment will be E. By the end of the loan what will be the total of all your payments? By the end of the loan, the total of all my payment will be F. What is the total interest you will have paid on your mortgage by the end of the loan? I will have paid in interest by the end of the loan. Hint Check Answer for the 3 points. Hint a month. Hint Question Help: Video 1 Video 2 Message instructor
Question 6 You want to purchase a new home for $670,000 using a mortgage that requires a maximum loan-to-value ratio of 85%. What is the minimum down payment you must make? Your Answer: Answer
QUESTION 10 Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they’re not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 3.25%, compounded monthly . How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? What is the total amount that would be paid to the lender after 25 years of payments? ANSWER FOR PART 1 : 2192.92 ANSWER FOR PART 2 : 657876.00 What if Aya and Sakura could only afford a monthly payment of $1800? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? What is the total amount that would be paid to the lender over 25 years?
QUESTION 1 Afamily planning to buy a house can afford a monthly payment of $1650.00. What is the maximum amount of 20 year-long mortgage they can afford taking, given that the bank charges 3.75% per year compounded monthly? Attach File Browse Local Files
• Question 26 You want to buy a $150,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan at 4.9% interest for the rest. The bank will charge 3 points on the amount financed. a) What is the amount of the down payment? S b) How much is the loan amount going to be? c) What will be the amount charged for 3 points? *1 point is 1 % of the mortgage amount d) Find the amount of the monthly payment. (Do not add the cost of the points to the loan amount) Hint: click here Question Help: Video M Message instructor Submit Question
Question 16 16. You are going to use a mortgage to buy a house. This mortgage will have an initial balance of $200,000. You go online to a bank and they make you an offer: You can get a 3.30% loan for 30 years with 3 points. If you anticipate staying in the house for 10 years, what would be the effective (annual) interest rate of the loan? Please put your answer in percentage with two decimal places for instance put 7.63 for 7.63%. Please enter a positive value.
Question 11 Find the monthly house payment necessary to amortize the following loan. In order to purchase a home, a family borrows $70,000 at 12% for 15 years. What is the monthly payment? $840.12
QUESTION 15 You have found your dream house for your family. The house is listed at $500,000. You are planning to take out a mortgage of a principal of $350,000 to finance the purchase. The mortgage market is competitive and the current market rate for 30-year fixed rate mortgage is 6%. Of the first payment, the interest payment is , while the amount of principal is . a. $2,042; $287 b. $1,750; $348 c. $1,164; $1,164 d. $1,049; 1,049
Practice Question 2You need to borrow $800,000 to buy a house.You borrow the money from a bank via amortgage with a 25-year term. The mortgagerequires you to make monthly repayments, withthe first payment one month from now. If themonthly interest rate is 0.5%, work out the fairmonthly repayment that you will have to make.
Question 5 How much the monthly payment on a $114,000 home be if you get 4.1% interest over a 15 year loan with a $25,000 dollar balloon payment (rounded to the nearest dollar)?
Question 7 A person needs $20,000 immediately as a down payment on a new home. Suppose that she can borrow this money from her company credit union. She will be required to repay the loan in equal payments made every six months over the next 10 years. The annual interest rate being charged is 10% compounded bimonthly. What is the amount of each payment? Use the editor to format your answer