Question
A house is selling for $175,000 and your bank makes you the following offer: 5.36% interest per year compounded monthly, $35,000 down payment, 20 year
A house is selling for $175,000 and your bank makes you the following offer: 5.36% interest per year compounded monthly, $35,000 down payment, 20 year amortization period.
$____________7. What is the amount of your monthly payment?
_____________8. What is the bank's loan to value ratio?
$____________9. If you sell the house at the end of 10 years, what is your mortgage balance at that time? (What will you owe the bank.)
$___________10. If you wish to reduce the term of the loan from a 20 year to 10 year amortization, what will the payment be, based on 10 year amortization?
$___________11. If you sell the house after 5 years for $225,000 how much will you have left, in cash, after paying off your mortgage, assuming you made all of your monthly payments when due. Assume no expenses or costs in selling the house?
$___________12. If you could come up with an additional $10,000 for a down payment how much would you reduce your monthly payment?
Please explain and show how to solve! Also, is this solvable using a TI-84 Plus?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started