a home for $190‚000 with a down payment of $19‚000 at 7% for 25 years. Since then the rate has risen to 9%. How much more would her monthly payment be if she bought the house at 9%? a. $143.00 b. $208.97 c. $436.40 d. None of these e. $227.43 1 points Question 2 1. The total cost of interest is equal to the total of all monthly payments: a. Divided by amount of mortgage b. Minus amount of mortgage c. Times amount of mortgage d. Plus amount of mortgage e. None of these 1 points Question
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10 years at a 12 percent discount rate and at a 6 percent rate. At 6 % = $ 867.13At 12 % = $ 499.99Definition of Present valueThe free dictionary defines Present Value as‚ The amount of cash today that is equivalent in value to a payment‚ or to a stream of payments‚ to be received in the future. To determine the present value‚ each future cash flow is multiplied by a present value factor. For example‚ if the opportunity cost of funds is 6%‚ the present value of $500 to be received in ten year is
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you can put a down payment on the home. This is an amount of money‚ usually paid upfront in the form of cash. To find out how much this is‚ you will use the lowest interest rate available at the time. Down payments are categorized
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Financial Institutions FNAN 321 Homework #9 Instructions 1. Order: Questions must be submitted in order. Any homework assignment with questions or parts of questions that are submitted out of order will receive no credit. The term order refers to the question numbers on the assignment. For example‚ if there are 5 questions‚ then the submitted solutions must be numbered from 1 to 5 in numerical order and each question must be answered completely under the appropriate number. Questions with subparts
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FHA‚ is a provider of mortgage insurance on loans made by approved lenders throughout the United States and its territories. FHA basically insures different kinds of mortgages including the single family homes‚ also known as the FHA 203(b) loans and multifamily homes. FHA remains the largest provider of mortgage insurance in the world‚ providing mortgage insurance coverage to over 34 million properties since it was established in 1934. The FHA Loan for Single Family Mortgages - FHA 203(b) loans With
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mid-2000’s was largely due to the sub-prime mortgages. A sub-prime mortgage is generally classified as a mortgage loan to a borrower with a low credit score‚ with a small down payment‚ or high debt to income ratio. The market for sub-prime mortgages was 37.6 percent of total mortgages by the end of 2005. In 1994 sub-prime mortgages accounted for only 6 percent of total mortgages. To a great extent the “bubble burst” is the result of ethical failure. Mortgage brokers relaxed documentation requirements
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to reflect this. Hayley has applied for a 95% interest-only mortgage from the Glade Building Society. The interest rate is discounted by 1% for the first two years. The Society’s fixed rate product over the same period is currently 0.25% higher. The Society routinely carries out searches on prospective borrowers through FactLine. Hayley has asked why this is necessary. The Society has told Hayley that it requires her to take out a mortgage indemnity guarantee policy in respect of 20% of the £80‚000
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has a car payment of $249 per month. The average utilities are: Electricity‚ $79; Gas‚ $49; Water‚ Sewer‚ and Trash‚ $27. In addition‚ Joe is saving $100 per month. How much of his monthly salary would be committed to utilities and other expenses? $504.00 would be committed to utilities and other expenses. 4. If Joe’s net income after taxes each month is equal to 74% of his gross wages‚ how much is his net income? $1776 a month would be Joe’s net income. 5. Joe’s total monthly payment to the bank
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| |Annual rent‚ $7‚380 |Annual mortgage payments‚ $9‚800 ($9‚575 is interest) | |Insurance‚ $145 |Property taxes‚ $1‚780 | |Security deposit‚ $650 |Insurance/maintenance‚ $1‚050 | | |Down payment/closing costs‚ $4‚500 | |
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Business Indicator 30-Year Fixed Mortgage Rates 30-Year Fixed Reporting Wall Street Journal Thursday‚ February 21‚ 2013 3.85% = Current Fixed Rate for 30 Year Fixed Mortgage The 30 year fixed mortgage loan seems to be one of the most popular loans people take out because people get to pay back the money over a stretched period of time. The interest rate on a fixed mortgage rate stays the same throughout the life of the loan. Each monthly payment is equal to the interest on the principal
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