Mr. Smith is purchasing a $ 170000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) 25-year mortgage at a rate of 7 % (i) the monthly payment:  (ii) the total amount of interest paid: b) 15-year mortgage at a rate of 7 %. (i) the monthly payment:  (ii) the total amount of interest paid:

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

A: Monthly mortgage payments is calculated by excel PMT function. Prepayment penalty will increase the…

Q: Fidelio has purchased a condominium for $39,750, of which 80% is to be financed by a mortgage.…

A: given, price = $39,750 loan = 80% p= $39,750 x 0.8 = 31800 pmt = $395.80 rate = 14.3%

Q: Henry Fuller has agreed to purchase a used automobile for $13,500. He wishes to limit his monthly…

A: The portion of the purchase price of goods and services that are paid immediately at the time of…

Q: James has a mortgage of $98,500 at 4% for 20 years. The property taxes are $3,700 per year, and the…

A: PITI payment : It refers to mortgage payment made by an individual and such payment includes loan…

Q: An investor has owned a property for 15 years, the value of which is now to $200,000. The balance on…

A: Investors shall select that alternative that will cost the investor less. So, this will lead to the…

Q: Suresh buys a house for $794,357.30 with a down payment of $72,214.30 and a mortgage for the…

A: Amortization is the period of repayment of the loan. It is the period in which you repay your loan.…

Q: The Smiths purchase a $600,000 house and must sell their old home inorder to make a 20 percent down…

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

Q: nna is buying a house selling for ​$235,000. To obtain the​ mortgage, Anna is required to make a…

A: The monthly payment is the amount that has to pay each and every month until the loan matures or…

Q: Tanyarita has a mortgage of $67,500 at 8.5% for 20 years. The property taxes are $2,900…

A: The monthly payment for property tax  = Total due / 6 months   Monthly insurance premium = Total…

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: Olivia plans to secure a 5-year balloon mortgage of $270,000 toward the purchase of a condominium.…

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

Q: 2) Ahmet bought a new house for 1 100 000 TL and financed 70 percent of the purchase price with a…

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

Q: Lars has been approved for a $425,000, 20-year mortgage with an APR of 5.125%. a. What is his…

A: given, principal amount =$425,000 n=20 years r=5.125% m=12

Q: John House has taken a 30-year, $250,000 mortgage on his house at an interest rate of 6% per year.…

A: If an individual or company has insufficient of funds then, the option for mortgage is available. We…

Q: The Brook's have a $220,000 mortgage paid monthly and amortized over 30 years. They chose a 5 year…

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

Q: Gavin and Holly purchased a $640,000 condominium in Toronto. They paid 20% of the amount as a down…

A: Equivalent Monthly Payment: It is a fixed payment to a lender   by a borrower on a specified date of…

Q: James has a mortgage of $98,500 at 8% for 15 years. The property taxes are $3,900 per year, and the…

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

Q: Curtis bought a condominium for $319 000 and made a down payment of $64 000. The annual interest…

A: Loan amount (L) = $255,000 (i.e. $319,000 - $64,000) Monthly interest rate (r) = 0.004575 (i.e.…

Q: ed and his wife have applied for a $350,000 mortgage to be amortized over of 2.8% and a term of 5…

A: GDS ratio that total payment of mortgage and other related housing expenses to the monthly income…

Q: The Randall family is nearing the end of the first 5-year term on their mortgage. Monthly payments…

A: A mortgage loan is considered a  secured loan where funds are provided are given to the borrower…

Q: grandmother’s estate in a few months’ time. He is eyeing to buy a 1-bedder condominium so that he…

A: In this problem we have to calculate monthly interest rate and present value FACTOR and from that we…

Q: Olivia plans to secure a 5-year balloon mortgage of $210,000 toward the purchase of a condominium.…

A: Olivia secures a balloon payment mortgage for a condominium of $210,000. The loan was amortized for…

Q: Ben and Jane have been approved for a $220,000 loan, 30-year mortgage with an APR of 3.82%. What…

A: The banks and the financial institutions provide the loans for a fixed interest rate. The interest…

Q: To buy a house, John takes out a fixed-rate amortizing mortgage of $270,000 for 20 years, with an…

A: Loan amount (PV) = $ 270,000 Annual interest rate = 9% Monthly interest rate (R) = 9%/12 = 0.75%…

Q: Roman paid $68,800 as a down payment towards an apartment purchase and receive nortgage from a bank…

A: Loans are paid by monthly equal amounts of payments and these equal payments carry the payment for…

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: Marcel Thiessen purchased a home for $208,400 and obtained a 15-year, fixed-rate mortgage at 7%…

A: Given information: House price amounted to $208,400 Fixed rate mortgage is 7%, Down payment is 10%,…

Q: Amos takes out a 25-year repayment (amortising) mortgage of £100,000 at an annual interest rate of…

A: NPER here means the period in years.

Q: The Nicols are buying a house selling for $245,000. They pay a down payment of $45,000 from the sale…

A: One mortgage point is equivalent to 1% of the loan. Payment of mortgage points reduces the…

Q: Marcel Thiessen purchased a home for $205,600 and obtained a 15-year, fixed-rate mortgage at 7%…

A: Interest part is the amount of interest payable on outstanding loan balance and principal repayment…

Q: Juwen obtained a 25-year residential mortgage at 4.75% compounded semiannually for a 5-year term. If…

A: Loan amount (L) = $381500 n = 25 years = 300 payments Interest rate = 4.75% semiannually compounded…

Q: Olivia plans to secure a 5-year balloon mortgage of $240,000 toward the purchase of a condominium.…

A: The mortgage is the payment which is considered as a periodic payment for the purpose of loan. The…

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: Marry are buying her first house for $220,000, and are paying $30,000 as a down payment. You have…

A: Please refer to the image below.

Q: John wants to buy a property for USD 105,000 and once on 80% loan for USD 84000. A lender indicates…

A: Property Price  $    1,05,000.00 Loan  80% Loan Value  $       84,000.00 loan origination fee…

Q: Wing Sze has a mortgage for $400,155.00. The term of the mortgage is 5 years, and the amortization…

A: Moirtagage amount is 400,155.00 rate of interest (r) is 8.250% Compounded monthly Therefore; r=…

Q: Shane was receiving rental payments of $3,000 at the beginning of every month from the tenants of…

A: Solution:- When an equal payment is made each period at beginning of the period, it is called…

Q: Mr. Smith is purchasing a $ 180000 house. The down payment is 20 % of the price of the house. He is…

A: The monthly mortgage amount: A housing loan is usually repaid with a fixed repayment each month…

Q: Mr. Smith is purchasing a $ 140000 house. The down payment is 20 % of the price of the house. He is…

A: Monthly payments refer to the periodic payment of repayment of a loan. Monthly payments include both…

Q: John Mayer Inc. purchases a house for $500,000. On January 1, He makes a 20 percent down-payment and…

A:

Q: An investor has owned a property for 15 years, the value of which is now to $200,000. The balance on…

A: Wraparound Loan is amortizing loan where a new lender agrees to pay off borrower existing loan.…

Q: Lucky took out a $289,000 25-year mortgage at an APR of 4.85%.a. What is the monthly payment?b. What…

A: Using excel PMT function

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: To buy a house. John takes out a fixed rate amortizing mortgage of 270000 for 20 years, with an…

A: Mortgage = 270000 Time period = 20 years  Annual percentage = 9% (Compounded monthly)

Q: Mr. Smith is purchasing a $ 190000 house. The down payment is 20 % of the price of the house. He is…

A: Monthly installments are computed by equating the present value of all the monthly installments with…

Q: Jeff purchased a house costing $200,000.  He put 20% down and borrowed the balance negotiating a…

A: Borrowings are the liability that is used to finance the requirement of the funds. The borrower…

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: Dominic takes out a 30-year mortgage of 200000 dollars at the interest of 5.76 percent compounded…

A: Loan amount  $2,00,000.00 Periodic interest 0.48% nper (no. of compounding period) 360…

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.