Please provide work, thanks.

Five years ago, you bought a house for $500,000 with a 30 year fixed loan at an interest rate of 4.5%. Your monthly payments for principal and interest are: $2,533.43. Interest rates have fallen to 3.5%, and you are considering refinancing your loan (taking out a new loan and paying off your original loan). You still have $455,790 in outstanding principal that you owe on your original loan. If you took out a new 30 year fixed rate loan with an annual interest rate of 3.5%, what would your monthly payments be for principal and interest if you took 30 years to pay off the new loan?

$2,273.21 for savings of about $260 per month.

$1,985.69 for savings of about $548 per month.

$2,046.70, for a savings of about $487 per month.

$2,641.65, for an increase of about $108 per month.

If you refinance with a 30 year loan, some of your savings is due to the lower interest rate and some of your savings is due to starting your 30 year clock over and essentially extending the length of time youll be making payments to the bank. How much do you save because of the drop in interest rate when you refinance? (Clue: figure out what your payment would be if you refinanced but paid your loan of in 25 years instead of 30).

633.35

312.36

251.64

486.73

You just bought a house for $500,000 and took out a $400,000 loan to do so. How much will you pay in ad valorem property taxes this year? What is the most you would pay in the form of ad valorem property taxes two years from now?

This year: 5,000. Two years from now: 5,000.

This year: 4,000. Two years from now: 4,000.

This year: 5,000. Two years from now: 15,000.

This year: 5,000. Two years from now: 5,202.

This year: 4000. Two years from now: 4,162.

Your mortgage is an ARM with a 1 year adjustment interval, 4% margin, and a 2% periodic cap. Your initial APR on this loan was 4.5%. Over the last 5 years the market rates of interest have risen dramatically. The current interest rate index for your loan is 8.5 %. What APR are your monthly payments being calculated on today?

10.5%

12.5%

4.5%

8.5%

You have been out of school for a few years and your gross income is now $5,000 per month. You have no other long-term debt. What is the maximum PITI you are likely to qualify for based on your ability to pay ratio?

2,000

1,400

1,800

1,200

With an income of $60,000 per year and no long-term debt, what is the maximum house price you could afford if the bank required that you satisfy the 28/36 rule and make a 20% down payment? Assume you would be obtaining a 30 year fixed rate loan at an interest rate on the loan would be 6%. Assume that property taxes and insurance amount to $400 per month.

$208,490

$412,481

$389,652

There is not enough information to determine.

$166,792