1. Arya borrowed $400,000 using a 35-year, partially amortizing, constant payment mortgage with interest rate of 9% p.a. compounded monthly. The balloon payment due at maturity equals $100,000.

The lender charges a loan origination fee of $12000, but agrees to finance the fee.

The monthly payment for Arya equals $ _______

2.Andrew Bruc took out a mortgage to buy a house whose price equals $673,900. The lender requires Andrew to put 27% of the house price as down payment.

The loan-to-value ratio of this mortgage equals ______ %.

3. Arya borrowed $400,000 using a 35-year, partially amortizing, constant payment mortgage with interest rate of 9% p.a. compounded monthly. The balloon payment due at maturity equals $100,000.

She always pays on time. After paying the loan for 120 months, the balance of this loan equals $ ________.

Hint: calculate the monthly payment first. Pay attention to the sign of the balloon payment in your calculation

4.A borrower defaults and he has three mortgages on the house. At the time of the default, the first lien has a balance of $100, the second lien has a balance of $200, and the third lien has a balance of $300. The borrower also owes $50 in property taxes.

The recovery rate for the third lien holder equals 50% if the house price is sold for $ ________.