You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (nake certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $167,000 at 4% for 20 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment

You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (nake certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $167,000 at 4% for 20 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $170,000 at 5.5% for 23 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment
You are looking to get a 30 year mortgage at 4%. You can afford $1,000 per month. a) What is the maximum principal you can borrow? $ b) Instead of a home, you decide to buy a duplex and rent out the other side for $500 a month. With this additional $500 added to your monthly payment, what is the maximum principal you can borrow? c) You buy a duplex for the amount of your answer in part (a), but apply the extra $500 to the mortgage (making your payment $1,500). How long does it take to pay off this loan in years? years
you wish to purchase real property. the lender will give you a 250000 fixed rate 30 year mortgage at 3.5% per annum. suppose that before you can make any payments you receive a pay raise so you can pay an extra 200 per month with your normal payment. how many payments are required to fully amortize the loan assuming the extra 200 is paid each month?
You have just made an offer on a new home and are seeking a mortgage. You need to borrow $600,000. The bank offers a 30-year mortgage with fixed monthly payments and an interest rate of 0.5% per month. What is the amount of your monthly payment if you take this loan? Alternatively, you can get a 15-year mortgage with fixed monthly payments and an interest rate of 0.4% per month. How much would your monthly payments be if you take this loan instead?
You want to buy a house valued at $200,000. AFter a down payment, you can finance the house with a 20 year mortgage at 4.2% APR compounded monthly. If you have a monthly payment of $1000, how much of the second payment goes towards the blance on the loan?
You decide to finance a $10,000.00 car at a 7% interest rate for 4 years. A. How much will your monthly payment? My payment will be a month $_______. B. By the end of the loan what will be the total of all your payments? The total of all my payments will be $________. C. How much interest will you pay over the life of the loan? I will pay $_________ in interest over the life of the loan.
Suppose you want to purchase a house. Your take-home pay is $⁢2830 per month, and you wish to stay within the recommended guidelines for mortgage amounts by only spending 1/4 of your take-home pay on a house payment. You have $⁢15,700 saved for a down payment and you can get an APR from your bank of 3.95%, compounded monthly. What is the total cost of a house you could afford with a 15-year mortgage? Round your answer to the nearest cent, if necessary.
Suppose you purchase a house using a 30-year fixed rate mortgage. The APR on the loan is 3.2% and you will be required to make monthly payments of $3,700 what is the price you paid for your home?
You have decided to buy a car that costs $25,800. Since you do not have a big down payment, the lender offers you a loan with an APR of 6.01 percent compounded monthly for 6 years with the first monthly payment due today. What is the amount of your loan payment?
After making payments of $901.10 for 8 years on your 30 year loan at 8.3%, you decide to sell your home. What is the loan payoff?
You buy a rental property, taking out a 15 year loan with monthly payments and a mortgage rate of 4.7%. Your plan is to pay down the remaining balance after 7 years. How much will that balance be if the value of the loan is $250,000? (Answer to nearest dollar. HINT: you must find the payment before you can find the balance.)
You can afford a $1,250.00 per month mortgage payment. You can get a loan at 7% interest for 30 years.A. What is the largest loan can you afford? I can afford a loan of at most $________. B. How much total money will you pay the loan company? The total of all my payments will be $_______. C. How much of that money is interest? The amount of my total payments will be $_______.

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