Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please make sure answer all the questions .Thanks 4. Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got

image text in transcribed
please make sure answer all the questions .Thanks
4. Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. Tim anticipates the index to be 3.50% at the time of the resel. What is Tim's monthly mortgage payment going to be during the 13 years? 5. In Q4, if the index resets to 3.50% as Tim forecasts, what will his new mortgage payment be in year 42 5. Tim wants to buy in apartment that costs $750,000 with an 85% LTV mortgage, Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 yeur CMT. The index was 1% at the time of origination. Tim also had to puy 3 points for this loan. Suppose the index rate will remain 1% for the life of the loan. Compute the true APR for this loan. 7. In Q6, compute the IRR for this loun usuring Tim will prepay in years. 4. Tim wants to buy an apartment that costs $750,000 with an 85% LTV mortgage. Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 year CMT. Tim anticipates the index to be 3.50% at the time of the resel. What is Tim's monthly mortgage payment going to be during the 13 years? 5. In Q4, if the index resets to 3.50% as Tim forecasts, what will his new mortgage payment be in year 42 5. Tim wants to buy in apartment that costs $750,000 with an 85% LTV mortgage, Tim got a 30 year, 3/1 ARM with an initial teaser rate of 3.75%. The reset margin on the loan is 300 basis points above 1 yeur CMT. The index was 1% at the time of origination. Tim also had to puy 3 points for this loan. Suppose the index rate will remain 1% for the life of the loan. Compute the true APR for this loan. 7. In Q6, compute the IRR for this loun usuring Tim will prepay in years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Finance Financial Management And Investment Management

Authors: Pamela P. Drake, Frank J. Fabozzi, Francesco A. Fabozzi

1st Edition

9811239657, 978-9811239656

More Books

Students also viewed these Finance questions

Question

Additional Factors Affecting Group Communication?

Answered: 1 week ago