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As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) Amount Financed Interest Rate Term of Loan (years) Monthly PI Annual Property Tax Annual Insurance Monthly PITI $240,000 9.50% 25 $ $6,513 $2,126 $ Michael Sanchez purchased a condominium for $98,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in %) of the monthly principal and interest portion, PI, of Michael's loan? (b) Construct an amortization schedule for the first four months of Michael's mortgage. Payment Number Monthly Payment (in $) Monthly Interest (in $) Portion Used to Reduce Principal (in $) Loan Balance (in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,640 and the hazard insurance premium is $730 per year, what is the total monthly PITI of Michael's loan (in $)? Phil Pittman is interested in a fixed-rate mortgage for $300,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? $ 15-year mortgage 30-year mortgage (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage 30-year mortgage (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $986,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? S (b) If Darrell chooses the 4-point 9% loan, what will be his total outlay in points and payments after 48 months? S (c) If Darrell chooses the 3-point 9.25% loan, what will be his total outlay in points and payments after 48 months? S (d) If Darrell chooses the 2-point 9.5% loan, what will be his total outlay in points and payments after 48 months? $ (e) of the three choices for a loan, which results in the lowest total outlay for Darrell after 48 months? the 4-point 9% loan the 3-point 9.25% loan the 2-point 9.5% loan As one of the loan officers for Grove Gate Bank, calculate the monthly principal and interest, PI (in $), using this table and the monthly PITI (in $) for the mortgage. (Round dollars to the nearest cent.) Amount Financed Interest Rate Term of Loan (years) Monthly PI Annual Property Tax Annual Insurance Monthly PITI $240,000 9.50% 25 $ $6,513 $2,126 $ Michael Sanchez purchased a condominium for $98,000. He made a 20% down payment and financed the balance with a 30 year, 5% fixed-rate mortgage. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount (in %) of the monthly principal and interest portion, PI, of Michael's loan? (b) Construct an amortization schedule for the first four months of Michael's mortgage. Payment Number Monthly Payment (in $) Monthly Interest (in $) Portion Used to Reduce Principal (in $) Loan Balance (in $) 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ 4 $ $ $ $ (c) If the annual property taxes are $1,640 and the hazard insurance premium is $730 per year, what is the total monthly PITI of Michael's loan (in $)? Phil Pittman is interested in a fixed-rate mortgage for $300,000. He is undecided whether to choose a 15- or 30-year mortgage. The current mortgage rate is 4.5% for the 15-year mortgage and 5% for the 30-year mortgage. (Round your answers to the nearest dollar. Use this table, if necessary.) (a) What are the monthly principal and interest payments (in $) for each loan? $ 15-year mortgage 30-year mortgage (b) What is the total amount of interest (in $) paid on each loan? 15-year mortgage 30-year mortgage (c) Overall, how much more interest (in $) is paid by choosing the 30-year mortgage? The buyer of a piece of real estate is often given the option of buying down the loan. This option gives the buyer a choice of loan terms in which various combinations of interest rates and discount points are offered. The choice of how many points and what rate is optimal is often a matter of how long the buyer intends to keep the property. Darrell Frye is planning to buy an office building at a cost of $986,000. He must pay 10% down and has a choice of financing terms. He can select from a 9% 30-year loan and pay 4 discount points, a 9.25% 30-year loan and pay 3 discount points, or a 9.5% 30-year loan and pay 2 discount points. Darrell expects to hold the building for four years and then sell it. Except for the three rate and discount point combinations, all other costs of purchasing and selling are fixed and identical. (Round your answers to the nearest cent. Use this table, if necessary.) (a) What is the amount being financed? S (b) If Darrell chooses the 4-point 9% loan, what will be his total outlay in points and payments after 48 months? S (c) If Darrell chooses the 3-point 9.25% loan, what will be his total outlay in points and payments after 48 months? S (d) If Darrell chooses the 2-point 9.5% loan, what will be his total outlay in points and payments after 48 months? $ (e) of the three choices for a loan, which results in the lowest total outlay for Darrell after 48 months? the 4-point 9% loan the 3-point 9.25% loan the 2-point 9.5% loan