Mortgage, part 1 (The Loan) 5 years ago you purchased a home for $215,000. You made a 10% down payment and paid for the rest with a 30 year mortgage with a rate of 4.65%. How much was the down payment?  How much of the purchase price did you finance with the loan?  What is your monthly payment? Use solver. Clearly write the formula you will use as well as all values used in the formula.  How much of the loan is left to pay after the first 5 years? Use solver. Clearly write the formula you will use as well as all values used in the formula.  How much did you pay to the lender (total) over the first 5 years?  How much of what you paid to the lender in the first 5 years was interest?  If you paid this loan for all 30 years, how much interest would you pay?

Q: Explain which is the better option.

A: Information Provided: House costs = $100,000 Down payment = $25,000 Option A = 3% APR for 20 years…

Q: Problem. Suppose you want to purchase a home for $440,000 with a 30-year mortgage at 4.24% interest.…

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Q: You can afford a $1050 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: a.

Q: Question You want to take out a $125,000 mortgage. The interest rate on the mortgage is 5%, and the…

A: Solution: Monthly periods = 30*12 = 360 Monthly interest rate = 5% / 12 = 0.41666666% Mortgage…

Q: b) Use a calculator or computer to determine how many years it will take to pay off the mortgage.

A: MORTGAGE-It is a type of loan that is used to finance a property that is usually home without having…

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Q: Suppose you took out a 30 year mortgage on August 2, 2012 for $200,000. You decide to pay off the…

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Q: You can afford a $1450 per month mortgage payment. You've found a 30 year loan at 6% interest. a)…

A: Monthly payment (P) = $ 1450 Period = 20 Years Number of monthly payments (n) = 20*12 = 240 Interest…

Q: Question 10: How much can I borrow for the purchase of my first home if I can afford to make monthly…

A: Monthly payment (P) = $ 1000 Annual interest rate = 4.8% Monthly interest rate (r) = 4.8%/12 = 0.40%…

Q: 16. You are going to use a mortgage to buy a house. This mortgage will have an initial balance of…

A: Mortgage is a legal agreement between the bank and the borrower for lending money to the borrower at…

Q: You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A…

A: Purchase cost of Home = 280,000 Years = 20 APR= 9%   Find out PMT

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A: a) Hence, the size of loan is $166,791.61. b) Hence, the total money to be paid is $360000.

Q: 19. You borrow $1,500,000 to purchase a small apartment building. The lender charges you a 2%…

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A:

Q: You can afford a $1400 per month mortgage payment. You've found a 30 year loan at 8% interest. a)…

A: given, pmt = $1400 m = 30 years  r = 8%  applying formula for pmt: pmt=loan amount…

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A: Given data; Loan amount = $225,000 interest rate= 7% monthly interest rate = 0.58333333% number of…

Q: LOAN AMORTIZATION AND EAR You want to buy a car. and a local bank will lend you $20,000. The loan…

A: Following formula will be used:

Q: Suppose you purchased a house 7 years ago and took out a mortgage for $400,000 with a 5.6% interest…

A: Here,

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A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: What are your monthly payments if the mortgage is for 30 years and the nominal annual mortgage…

A: Information provided: Principal amount = $150,000 Term = 30 years Interest rate = 5.50%

Q: The Brown family recently bought a house. The house has a 30 year, $156,000 mortgage with a nominal…

A: Loans are paid by monthly payment that carry the payment of interest and payment for the principal…

Q: You can afford an $800 per month mortgage payment. You found a 30-year loan at 6% interest. How big…

A: a) Following information are given in the question:

Q: You want to buy a house and will need to borrow $200,000. The interest rate on your loan is 5.23…

A: PRESENT VALUE (CURRENT MARKET PRICE) 200,000 NPER (n) = 30*12 360 INTEREST RATE (5.23%/12)…

Q: You can afford a $800 per month mortgage payment. You've found a 30 year loan at 8% interest a) How…

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Q: Buy house using a 15-year fixed mortgage. Willing to pay up to $3,000 per month in monthly mortgage…

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A: Loan = 400,000 N = 30 years i.e. 360 months Assuming  Interest Rate = 12%/12 = 1% per month

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A: Formulas that are used:-

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Q: Not sure where to start this one Suppose that you purchase a new home that costs $180,000. A local…

A: MS-Excel --> Formulas --> Financials --> PMT Therefore, the monthly payment is $607.11.

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A: The mortgage loan is an arrangement of fund to buy a property and repay the loan in regular…

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

Q: You are considering purchasing a new home. You will need to borrow $280,000 to purchase the home. A…

A: A mortgage is a long-term loan designed to help you buy a house. In addition to repaying the…

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A: Using excel PV function to calculate the loan amount

Q: I can afford a $1500 per month mortgage payment. I found a 30 year loan at 6% interest. How big of a…

A: The present value function or concept can be used to determine the present value of a future sum or…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.