Question
1. Ahmed is purchasing a home worth $358219 and is financing the purchase with a 30-year, fixed rate, fully amortizing loan at 90% LTV with
1. Ahmed is purchasing a home worth $358219 and is financing the purchase with a 30-year, fixed rate, fully amortizing loan at 90% LTV with 2.1% interest. What will be Ahmed's monthly payments? Round your answer to the nearest cent (e.g. if your answer is $1,000.567, enter 1000.57).
2. Consider the following pool of mortgages:
100 mortgages each with initial balance of $281551, interest rate 6.8%, issued for 30 years with monthly payments
80 mortgages each with initial balance of $364438, interest rate 3.4%, issued for 15 years with monthly payments
What is the Weighted Average Coupon (WAC) for this pool at origination? Express your answer as a rate rounded to 2 decimal points (e.g. if your answer is 5.112%, write 5.11).
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