Problem 4-17 A reverse mortgage is made with a balance not to exceed $300,000 on a property now valued at $700,000. The loan calls for monthly payments to be made to the borrower for 120 months at an interest rate of 6 percent Required: a. What will the monthly payments be? b. What will be the loan balance at the end of year 3? Assume that the borrower must have monthly draws of $2,000 for the first 50 months of the loan Remaining draws from months 51 to 120 must be determined so that the $300,000 maximum is not exceeded in month 120. What will draws by the borrower be during months 51 to 1207 Complete this question by entering your answers in the tabs below. Required A Required B Required c What will the monthly payments be? (Round your final answer to 2 decimal places.) Monthly payments Required 8 > Problem 4-17 A reverse mortgage is made with a balance not to exceed $300,000 on a property now valued at $700,000. The loan calls for monthly payments to be made to the borrower for 120 months at an interest rate of 6 percent. Required: a. What will the monthly payments be? b. What will be the loan balance at the end of year 3? c. Assume that the borrower must have monthly draws of $2,000 for the first 50 months of the loan. Remaining draws from months 51 to 120 must be determined so that the $300,000 maximum is not exceeded in month 120 What will draws by the borrower be during months 51 to 1207 Complete this question by entering your answers in the tabs below. Required Required B Required What will be the loan balance at the end of year 3? (Round your final answer to 2 decimal places.) Loan balance Required A Required c> Problem 4-17 A reverse mortgage is made with a balance not to exceed $300,000 on a property now valued at $700,000. The loan calls for monthly payments to be made to the borrower for 120 months at an interest rate of 6 percent Required: a. What will the monthly payments be? b. What will be the loan balance at the end of year 3? c. Assume that the borrower must have monthly draws of $2,000 for the first 50 months of the loan. Remaining draws from months 51 to 120 must be determined so that the $300,000 maximum is not exceeded in month 120. What will draws by the borrower be during months 51 to 1207 Complete this question by entering your answers in the tabs below. Required A Required B Required Assume that the borrower must have monthly draws of $2,000 for the first 50 months of the loan. Remaining draws from months 51 to 120 must be determined so that the $300,000 maximum is not exceeded in month 120. What will draws by the borrower be during months 51 to 120? (Round your final answer to 2 decimal places.) Monthly payment for months 61 to 120
