Question
You are planning to buy a house worth $500,000 today. You have $100,000 savings for the down payment. A 30-year fixed-rate mortgage is 6.00% APR.
You are planning to buy a house worth $500,000 today. You have $100,000 savings for the down payment. A 30-year fixed-rate mortgage is 6.00% APR.
a. Suppose if you take the 30-year loan, how much is your monthly payment?
b. Show the payment for interest and principal separately for the first three months.
c. Ten years later, the 30-year fixed-rate mortgage rate reduces to 3% APR. So you decide to refinance the debt with a new 30-year fixed-rate loan. How much is the new monthly payment?
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
