Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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_2

Step: 3

blur-text-image_3

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

The Evolution Of Finance

Authors: Barbara Guth

1st Edition

1633377261, 978-1633377264

More Books

Students also viewed these Finance questions

Question

Influences on Nonverbal Communication?

Answered: 1 week ago