AaBbccbd AaBbceDd AaBbc Aabbcc AaB Normal 1 No Spac.. Heading 1 Heading 2 Title Paragraph Styles Mortgages Unit 7 Assignment #4 / 24 Thinking 23 Application Name: 14 123. Application I 1. A house is purchased for $425,000 with a $50,000 down payment. A4% mortgage compounded monthly is taken out for a 25 year amortization period. Determine the amount for the monthly payment. 2. Meghan has a $210,000 mortgage at 7.75% amortized over 25 years. Determine her regular payment if she makes her payments: /12 a) monthly i) bi-monthly (24 payments/year)) bi-weekly (26 payments/year) /6 b) Calculate the total amount paid for the mortgage over the 25 years assuring the payments remain the same for each. Which payment frequency saved Meghan the most? 11 124 Thinking 3. A Canadian mortgage of $395,000 has an interest rate of 3.75% per annum compounded monthly, a 5 year term and an amortization period of 25 years. (hint look at day 8 example) /4 al Determine the monthly payment. b) Determine the amount you still have to pay after 5 years as you will have to refinance your mortgage. c. Determine the total interest paid in 5 years. 13 4. Luls and Sharon purchase a house for a selling price of $310,000 and need to make a 15% down payment. The remainder of the mortgage amount will be amortized over 25 years at a rate of a nerannum.comoded monthly Accome the will not refinance and will W 3 Review View Help PDF Architect S Creator Search E 21 AaBbced AaBbccbd Aabba AaBbcc AaB 1 Normal 1 No Spac... Heading 1 Heading 2 Title /6 Paragraph Styles b) Calculate the total amount paid for the mortgage over the 25 years assuming the payments remain the same for each. c) Which payment frequency saved Meghan the most? /1 14 /24 Thinking 3. A Canadian mortgage of $395,000 has an interest rate of 3.75% per annum compounded monthly, a 5 year term and an amortization period of 25 years. (hint look at day 8 example) a) Determine the monthly payment b) Determine the amount you still have to pay after 5 years as you will have to refinance your mortgage c. Determine the total interest paid in 5 years. /4 13 71 4. Luis and Sharon purchase a house for a selling price of $310,000 and need to make a 15% down payment. The remainder of the mortgage amount will be amortized over 25 years at a rate of 3.5% per annum compounded monthly. Assume they will never refinance and will pay it off in the full 25 years a) How much money will they need to borrow from the bank? b) What are their monthly payments? c) How much do they pay in total for their mortgage? du If they could only afford to make payments of $1200, how much would they have left to pay of their mortgage after 25 years? (hint: must find PV, using R-1200 then subtract that PV from mortgage borrowed) 14 2 /6
