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I need all parts solved, used a similar questions to reveal the needed parts. Unsure of how to calculate a few of them if you
I need all parts solved, used a similar questions to reveal the needed parts. Unsure of how to calculate a few of them if you could please explain work. Thanks!
You are buying a house and the mortgage company offers to let you pay a "point" ( 1.0% of the total amount of the loan) to reduce your APR from 6.23% to 5.98% on your $416,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly mortgage payment at 5.57% APR is (Round to the nearest cent.) The monthly mortgage payment at 5.32% APR is $ (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of $ (Round to the nearest cent.) The PV of the monthly savings is $ (Round to the nearest cent.) The balance of the mortgage at the eid of five years at 5.57% APR is $. 1. (Round to the nearest cent.) The balance of the mortgage at the end of five years at 5.32% APR is $ : (Round to the nearest cent.) The principal reduction due to the lower interest rate is $ (Round to the nearest cent.) The PV of the principal reduction is $ : (Round to the nearest cent.) The net benefit or cost is : (Round to the nearest cent.) The net benefit is ; therefore, you pay the point. (Select from the drop-down menus.) You are buying a house and the mortgage company offers to let you pay a "point" ( 1.0% of the total amount of the loan) to reduce your APR from 6.23% to 5.98% on your $416,000, 30-year mortgage with monthly payments. If you plan to be in the house for at least five years, should you do it? (Note: Be careful not to round any intermediate steps less than six decimal places.) The monthly mortgage payment at 5.57% APR is (Round to the nearest cent.) The monthly mortgage payment at 5.32% APR is $ (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of $ (Round to the nearest cent.) The PV of the monthly savings is $ (Round to the nearest cent.) The balance of the mortgage at the eid of five years at 5.57% APR is $. 1. (Round to the nearest cent.) The balance of the mortgage at the end of five years at 5.32% APR is $ : (Round to the nearest cent.) The principal reduction due to the lower interest rate is $ (Round to the nearest cent.) The PV of the principal reduction is $ : (Round to the nearest cent.) The net benefit or cost is : (Round to the nearest cent.) The net benefit is ; therefore, you pay the point. (Select from the drop-down menus.)Step by Step Solution
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