Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume your home is worth $200,000 on which there is a mortgage balance of $100,000. Banks lend up to 80% of the home value as
Assume your home is worth $200,000 on which there is a mortgage balance of $100,000. Banks lend up to 80% of the home value as home equity loan. a) what is the maximum you can borrow on home equity loan? b) if a loan for $1200 at 10% interest rate is an add-on loan with equal monthly payment over two years, what is its annual percentage rate (APR)? c) Ability to get loan with low interest rate and good terms depends on the five Cs of credit. Describe the five Cs of credit.
Assume your home is worth $200,000 on which there is a mortgage balance of $100,000. Banks lend up to 80% of the home value as home equity loan.
a) what is the maximum you can borrow on home equity loan?
b) if a loan for $1200 at 10% interest rate is an add-on loan with equal monthly payment over two years, what is its annual percentage rate (APR)?
c) Ability to get loan with low interest rate and good terms depends on the five Cs of credit. Describe the five Cs of credit.
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
Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
