You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $155,000 at 5% for 19 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment

You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $155,000 at 5% for 19 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment

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

See similar textbooks

Similar questions

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 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.
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 11 You want to buy a $227,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest. a) How much is the loan amount going to be? b) What will your monthly payments be if the interest rate is 5%? c) What will your monthly payments be if the interest rate is 6%?
• 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 30 You buy a home for $460 thousand doliars, paying 9% down, with a 30-year mortgage with a 4.07% interest rate. How many payments do you need to make before you can cancel your PMI? Note: Assume the home's value stays constant, round up to the nearest whole number.
QUESTION 15 If up-front refinancing fees-1.5% of the new mortgage amount, what is the net present value of refinancing your mortgage assuming you require a 9% rate of return on your money?
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 20 You owe $26,000 on student loans at an interest rate of 3.6% compounded monthly. You want to pay off the loan in 15 years. You should show your work for this problem. nts What will your monthly payments be? How much interest do you pay? > Next Question mplete 31
Question 11 To purchase a new car, you borrow $20,000. The bank offers a 6-year loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest: Which time value factor should be used to solve this problem? O PWCAF O USCAF O SPCAF O USPWF
QUESTION 2 You would like to purchase a home and are interested to find out how much you can borrow. When your lender calculates your debt to income ratio, he determines that your maximum monthly payment can be no more than $2,500. You would like to have a 30 yearfully amortizing loan and the interest rate offered on such a loan is currently 6%. Given these constraints, what is the largest loan you can obtain?
Level 2 Chapter 14 - Section I - Exercise 15 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 =