A mortgage loan in the amount of $300,000 is made at 7% interest for 30 years. Payments are monthly. What is the monthly payment if the loan is fully amortized? What is the loan balance at year 5? Assuming that the lender charge 3 points to close this loan, what is the APR for this loan? What the effective rate if the loan is prepaid at the end of year 5? What is the monthly payment loan is What is the loan balance at year 10? Assuming that the lender charge 2 points to close this loan, what is the APR this loan? What is the effective rate if the loan is prepaid at the end of year 10? An ARM loan, Loan Amount = $120,000; Monthly Payments, Index = 1-Year year Treasury bill Index at the end of at the end of year 1 is 6%. Index at the end of year 2 is 6.5 %. Index at the end of year 3 is 8.0%. one year adjustable, Margin = 2.00 %, Term = 30 Years Interest Rate Caps; annual 2% and life 4.5%, Teaser Rate = 5% Monthly payments in years 1, 2, 3 and 4? Suppose that index will stay 8% after the end of year 3. What is the monthly payment after year 4? What is the effective cost for a holding period? What is the effect cost for holding period? A borrower has a 30 year, $120,000 loan at 7%. Fifteen years later, the secured year, fees, borrower has the opportunity to refinance with a fifteen year mortgage at 6%. However, the upfront which will be paid in cash, are $2, 500. What is the return on investment if the borrower expects to remain in the home for the next fifteen years? (Increment cost) A borrow bought a house for $200.000; he can obtain an 80% loan with a 30 year fully amortizing, 7% interest rate and monthly payment. Or, he could get a 90% loan at 8% with same term. What is the incremental cost of borrowing the additional fund? Assume he will hold the loan for 30 years. (MBS) ABC Bank originated a pool of containing 100 three-year fixed-rate mortgages with loan amount of $150,000 each. All mortgages in the pool carry a rate of 6% with annual payments. The Pass guarantee and servicing fee is 1%. ABC Bank would like to sell the pool to investors via Mortgage no Through (MPT) security. Suppose that 100,000 shares will be issued and there are no prepayment and default for the borrowers. If market interest rate is 5.5%, what is the price for each share of MPT security? A mortgage loan in the amount of $300,000 is made at 7% interest for 30 years. Payments are monthly. What is the monthly payment if the loan is fully amortized? What is the loan balance at year 5? Assuming that the lender charge 3 points to close this loan, what is the APR for this loan? What the effective rate if the loan is prepaid at the end of year 5? What is the monthly payment loan is What is the loan balance at year 10? Assuming that the lender charge 2 points to close this loan, what is the APR this loan? What is the effective rate if the loan is prepaid at the end of year 10? An ARM loan, Loan Amount = $120,000; Monthly Payments, Index = 1-Year year Treasury bill Index at the end of at the end of year 1 is 6%. Index at the end of year 2 is 6.5 %. Index at the end of year 3 is 8.0%. one year adjustable, Margin = 2.00 %, Term = 30 Years Interest Rate Caps; annual 2% and life 4.5%, Teaser Rate = 5% Monthly payments in years 1, 2, 3 and 4? Suppose that index will stay 8% after the end of year 3. What is the monthly payment after year 4? What is the effective cost for a holding period? What is the effect cost for holding period? A borrower has a 30 year, $120,000 loan at 7%. Fifteen years later, the secured year, fees, borrower has the opportunity to refinance with a fifteen year mortgage at 6%. However, the upfront which will be paid in cash, are $2, 500. What is the return on investment if the borrower expects to remain in the home for the next fifteen years? (Increment cost) A borrow bought a house for $200.000; he can obtain an 80% loan with a 30 year fully amortizing, 7% interest rate and monthly payment. Or, he could get a 90% loan at 8% with same term. What is the incremental cost of borrowing the additional fund? Assume he will hold the loan for 30 years. (MBS) ABC Bank originated a pool of containing 100 three-year fixed-rate mortgages with loan amount of $150,000 each. All mortgages in the pool carry a rate of 6% with annual payments. The Pass guarantee and servicing fee is 1%. ABC Bank would like to sell the pool to investors via Mortgage no Through (MPT) security. Suppose that 100,000 shares will be issued and there are no prepayment and default for the borrowers. If market interest rate is 5.5%, what is the price for each share of MPT security
