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can you please help me solve the rest of the question. thank you so much! John purchased a house for $300,000 and seeks a loan.
can you please help me solve the rest of the question. thank you so much!
John purchased a house for $300,000 and seeks a loan. His lender presents two options; 800/0 LTV at 4% or 90% LTV a 5%. Both loans are paid monthly and have a 30 year terms. 300,000 What is the inc ental cost o borrowing the tional funds PV PMT Increment 300,000 360 ($2,999.99) 0 0.97% PMT PV PMT 80% 300,000 4.00% 360 ($12,000.01) HOW would you 294,000 360 ($3,059.99) 0 1.01% 90% 300,000 5.00% 360 ($15,000.00) PMT wer ch is 2 points were harged on the 90% loan? What would be the incremental cost of the additional money if John planned to stay in the home for only 5 years? (solve without the points) Outstanding Amount (80%) PMT PMT $12,000.01 4.00% 73 431.473 PMT FV 300,000 4.00% (S 12,000.01) 29 89 Outstanding Amount (90%) ($15,000.00) 25 0.97% 994 504.143 PV PMT PMT 300,000 5 0.97% (S15,ooo.00) 6,898 Increment 300,000 60 ($2,999.99) 177,608.773 'Ihe two house below are identical in all respects however House A can only be financed at market rates of 6% interest while House B you can assume the Seller's VA loan at 4% (each monthly for 30 years and at 80% of value or $160,000. What is the cash equivalent price of House A 6% House B? House B 4% A property is available for sale that normally would be financed with a fully amortizing $80,000 loans at 10% with monthly payments over a 25 year term. The builder is offering buyers a mortgage that reduces the payments by 50% for the first years and 25% for the second year. After the second year payments go back to the regular amount. How much oes the builder e to pay bank for this pro
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