Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

-0.9 POINTS 0/6 Submissions Used MY NO Five years ago, Diane cured a bank loan of $340,000 to help finance the purchase of a lot

image text in transcribed
image text in transcribed
-0.9 POINTS 0/6 Submissions Used MY NO Five years ago, Diane cured a bank loan of $340,000 to help finance the purchase of a lot in the San Francisco Bay area. The term of the mortgage was 30 years, and the interest rate was 10% per year compounded monthly on the unpaid balance. Because the interest rate for a conventional 30-year home mortgage has now dropped to per year compounded monthly, Diane is thinking of refinancing her property. (Round your answers to the nearest cent.) (a) What is Dane's current monthly mortgage payment? c) What is one's met standing balance per year compounded (c) Dane decides to refinance her property by securing a 30-year home m age loan in the amount of the current tanding principal at the prevailing interest rate of monthly, what will be her monthly mortgage payment Use the rounded outstanding balance (6) How much less would 's monthly more payment beshe n ces? Use the rounded values from parts(a)-(c). Sam a an of $160,000 for the purchase of a house. The mortgage is to be morired through monthly payments for a term of 15 years, with an interest rate of 3%/year compounded monthly on the to her houses How much w ahlwe r house at that time (Round your answer to the west cont.) The Martinezes are planning to refinance their home (assuring that there are no additional finance charges). The outstanding balance on their original loan is $175,000. Their finance company has offered them two options: Option B: A fixed-rate mortgage at an interest rate of 6.25% per year compounded monthly payable over a 15-year period in 180 equal monthly installments. (a) Find the monthly payment required to amortie ench of these loans over the life of the loan (Round your answers to the nearest Cent) Option A: $ Option : $ (D) How much terest would the Marine ve if they chose the 15 year mortgage instead of the 30-year mortgage? Use the rounded monthly payment values from part (a) Round your a wer to the nearest cent.) 10. -09 POINTS 06 Submissions Used MY NOTES berest charged at the rate of year compounded monthly on the unpaid balance The Tumeshave purchased a house for $130,000. They made an initial down payment of $20,000 and secure The loan is to be entired over 30 y. (Round your answers to the nearest cent.) (a) What m y payment wil the Tumers bereired to make c) What will be their equity Wher 10 years? (d) What will b e her 32 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Of Capital Redefined A Fresh Look On Financing Capital

Authors: Abhik Mukhopadhyay

1st Edition

3659182699, 978-3659182693

More Books

Students also viewed these Accounting questions