Q: A $100,000 mortgage at 7.1% compounded
A $100,000 mortgage at 7.1% compounded semiannually with a 20-year amortization requires monthly payments. How much will the amortization period be shortened if a $10,000 lump payment is made along wi...
See AnswerQ: A $100,000 mortgage at 3.8% compounded
A $100,000 mortgage at 3.8% compounded semiannually with a 25-year amortization requires monthly payments. How much will the amortization period be shortened if payments are increased by 10% starting...
See AnswerQ: Monthly payments on a $150,000 mortgage are based on
Monthly payments on a $150,000 mortgage are based on an interest rate of 6.6% compounded semiannually and a 20-year amortization. If a $5000 prepayment is made along with the 32nd payment: 1. How much...
See AnswerQ: The interest rate for the first five years of a $120
The interest rate for the first five years of a $120,000 mortgage is 4.15% compounded semiannually. Monthly payments are based on a 25-year amortization. If a $5000 prepayment is made at the end of th...
See AnswerQ: A $100,000 mortgage loan has a 25-year
A $100,000 mortgage loan has a 25-year amortization. 1. Calculate the monthly payment at interest rates of 4%, 6%, and 8% compounded semiannually. 2. By what percentage does the monthly payment on the...
See AnswerQ: A $130,000 mortgage loan at 7.2%
A $130,000 mortgage loan at 7.2% compounded monthly has a 25-year amortization. 1. What prepayment at the end of the first year will reduce the time required to pay off the loan by one year? (Assume t...
See AnswerQ: After three years of the first five-year term at 6
After three years of the first five-year term at 6.3% compounded semiannually, Dean and Cindy decide to take advantage of the privilege of increasing the payments on their $200,000 mortgage loan by 10...
See AnswerQ: The MacLellans originally chose to make payments of $1600 per month
The MacLellans originally chose to make payments of $1600 per month on a $138,000 mortgage written at 7.4% compounded semiannually for the first five years. After three years they exercised their righ...
See AnswerQ: The monthly payments on the Wolskis’ $266,000 mortgage were
The monthly payments on the Wolskis’ $266,000 mortgage were originally based on a 25-year amortization and an interest rate of 4.5% compounded semiannually for a five-year term. After two years, they...
See AnswerQ: A marketing innovation is the “cash-back mortgage” wherein
A marketing innovation is the “cash-back mortgage” wherein the lender gives the borrower an up-front bonus cash payment. For example, if you borrow $100,000 on a 3% cash-back mortgage loan, the lender...
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