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John has just obtained a variable - rate mortgage of 5 5 0 , 0 0 0 to help finance the purchase of his primary

John has just obtained a variable-rate mortgage of 550,000 to help finance the purchase of his primary residence priced at 700,000. The mortgage has a rate j12=5%(12 compounding frequency), amortized over 30 years with biweekly payment (hint: how many payments a year?). The term is 5 years.
(a) How much is the PMT?
(b) Now at the beginning of the 3rd year, home price has risen to 800,000. John is thinking of using HELOC (Home Equity Line Of Credit) to obtain cash to pursue other investment opportunities. What is the maximum amount of HELOC he can get? His favorite lender has two conditions for the HELOC amount.
Condition 1: HELOC amount <=65% of current home value
Condition 2: current OSB of the mortgage + HELOC amount <=80% of current home value

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