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Please solve with excel and show method used please A home mortgage with monthly payments for 30 years is available at 6% interest. The home
Please solve with excel and show method used please
A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying costs $120,000 and you have saved $12,000 to meet the requirement for a 10% down payment. The lender charges ''points" of 2% of the loan value as a loan origination and processing fee. This fee is added to the initial balance of the loan. (a) What is your monthly payment? (Answer: $660.46) (b) If you keep the mortgage until it is paid off in 30 years, what is your effective annual interest rate? (Answer: 6.41%) (c) If you move to a larger house in 10 years and pay off the loan, what is your effective annual interest rate? (Answer: 6.50%) (d) If you are transferred in 3 years and pay off the loan, what is your effective annual interest rate? (Answer: 6.95%)Step by Step Solution
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