Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Part 2: Partially amortized fixed rate mortgage (CPM) Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage
Part 2: Partially amortized fixed rate mortgage (CPM)
- Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage is 40% amortized over the life of the loan. The original loan balance is 75% of the property's value when initiated, and the property is expected to appreciate at a rate of 2.0% annually.
- What is the remaining loan balance at the end of the holding period if the property owner sells the property after 73 months?
- Illustrate with a well-labeled graph the amount of equity the property owner builds throughout the holding period of the loan.
- What is the owner equity in the property when the property is sold?
- What is the NPV and IRR of this investment, if the property owner sells the property after 73 months?
INTEREST RATE | 0.35% | |
LOAN AMOUNT | 120000 | |
PERIOD | 360 | |
MONTNHLY PAYMENTS | -$590.33 |
I need an excel sheet for the amortization but do not know the steps to set it up. If possible please create a chart with the steps included! Thank you so much!
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