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Need help answering the problems in the attached PDF. Some of the answers can be found online and the problems are not difficult, but you
Need help answering the problems in the attached PDF.
Some of the answers can be found online and the problems are not difficult, but you MUST show all mathematical work/formulas used to reach solutions. Thank you!
Q1. You currently owe $125,000 on a 5.75% mortgage. How much interest will be due on your next payment? If you make a payment of $500, how much will be paid to principal, and what will your balance be after that payment? Q2. You have obtained a bullet (interest only) loan for 8,000,000 at 4.875% that is due in 4 years. What is your monthly payment? What will your balloon payment amount be at month 48 (after you have made your regular payment)? Q3. You obtained a partially amortizing CRE loan for 12,000,000 at 4.5% on August 1, 2015. It is amortized on a 25 year schedule, with a balloon payment due after 7 years. There is no prepayment penalty during the 7th year. You have a contract to sell the building and expect to close on March 22, 2022. What will your monthly payments be? What will your balance be on March 1, 2022? What is your daily interest amount during March 2022? (Note: Assume the bankers year of 360 days, which means all months are considered to be 30 day months). What will your loan payoff be on March 22, 2022? Q4. You have obtained a $135,000, 6.5%, 30-year mortgage? What is your monthly payment? How much will you pay into principal the 3rd month of this mortgage? How much interest will you pay in the 3rd month of this mortgage? How much will you pay into principal the 3rd year of this mortgage? How much will you pay into interest in the 3rd year of this mortgage? What will your balance be at the end of year 3? If your bank charged you 2.5 points to obtain this loan, and you keep it for 30 years, what yield (APR) will the bank earn? What will the Federal Truth in Lending APR be (Hint: Round to the nearest 1/8%)? If you must pay $850 in other fees to close this loan, what is the cost to you of this loan (expressed as an APR), assuming you keep the loan for 30 years? If you keep the loan only 3 years, what will the lender yield be (APR)? If you keep the loan 3 years, what will your Effective Borrowing Cost be (APR)Step by Step Solution
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