Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2000 and plan to pay $100,000 as
Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2000 and plan to pay $100,000 as a down payment. Help them evaluate some mortgage options. 4. The Finances prefer a 15-year mortgage, but 15-year monthly mortgage payment is more than prefer to pay and want to know some options to get the payment down to their $2000/month goal. a) What APR on a 15-year mortgage with the same down payment and loan amount would meet Finances monthly payment goal? b) What loan term (in years) with a 3.25% APR would meet Finances monthly payment goal? c) What down payment on The Bank of United States 15-year mortgage with the 3% APR would meet Finances monthly payment goal? How much more than the original planned $100,000 down payment would they need? 5. The Finances plan to go with the extra down payment option and the 15-year mortgage option. Construct an amortization schedule for the 15-year Bank of United States loan in #3 (see section 5-18 of the textbook). What will be the Finances' loan balance after 7 years of payments (after payment 84)? Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2000 and plan to pay $100,000 as a down payment. Help them evaluate some mortgage options. 4. The Finances prefer a 15-year mortgage, but 15-year monthly mortgage payment is more than prefer to pay and want to know some options to get the payment down to their $2000/month goal. a) What APR on a 15-year mortgage with the same down payment and loan amount would meet Finances monthly payment goal? b) What loan term (in years) with a 3.25% APR would meet Finances monthly payment goal? c) What down payment on The Bank of United States 15-year mortgage with the 3% APR would meet Finances monthly payment goal? How much more than the original planned $100,000 down payment would they need? 5. The Finances plan to go with the extra down payment option and the 15-year mortgage option. Construct an amortization schedule for the 15-year Bank of United States loan in #3 (see section 5-18 of the textbook). What will be the Finances' loan balance after 7 years of payments (after payment 84)
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