Refinancing Home Mortgage
In: Mortgage Lenders
7 Nov 2010Newlyweds Eric and Pamela had finally the house they were looking for and the desire to found to make an offer. The 3-room house on the market for $ 156,100 and will require that the couple complete repairs such as installing a new roof and deck replacement on the back of the house. They believe that the repairs at about $ 15,000. The house is currently estimated at $ 150,000, but the agent is convinced that if they raise for repairs, the value of their house to $ 175,000.
1. Eric and Pamela have saved $ 12,000 for a down payment on the house. Based on the purchase price of $ 156,100, the calculation of the monthly principal and interest payments on a 30-year mortgage at 6.25%. (5 points)
Answer:
2. Find the total interest that Eric and Pamela is 30 years of the mortgage to pay.
Answer:
3. To pay $ 15,000 for repairs to the house, the couple has the choice between two options:
A. borrowed $ 15,000 from the bank with 8% interest, compounded quarterly for 5 years.
B. Increase the loan amount to $ 15,000 included, bringing the total amount funded $ 159,100
Calculate the total amount of interest during the loan period for each option to be paid
1. Eric and Pamela have saved $ 12,000 for a down payment on the house. Based on the purchase price of $ 156,100, the calculation of the monthly principal and interest payments on a 30-year mortgage at 6.25%. (5 points)
Answer: Use the following formula:
Payment PVoa = / [(1 - (1 / (1 + i) ^ n)) / i]
Where:
PVoa = present value of an ordinary annuity (payments will be made at the end of each period)
i = interest rate per period
n = number of periods
2. Find the total interest that Eric and Pamela is 30 years of the mortgage to pay.
Answer: Multiply the payment by the number of payments, then subtracted the principle.
3. To pay $ 15,000 for repairs to the house, the couple has the choice between two options:
A. borrowed $ 15,000 from the bank with 8% interest, compounded quarterly for 5 years.
B. Increase the loan amount to $ 15,000 included, bringing the total amount funded $ 159,100
Calculate the total amount of interest during the loan period for each option to be paid
Use the formula in question 1 and question 2 technology.
This is about mortgage information questions.
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