You qualify for a mortgage with a $2700 monthly payment. a. Determine the size of your loan

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You qualify for a mortgage with a $2700 monthly payment.

a. Determine the size of your loan if your mortgage rate is 10% and you can obtain an amortization period of 20 years. How about 30 years?

b. What is your loan size if your rate is 200bp higher?

c. Calculate the remaining mortgage balance at the end of year 6 under scenario (a) from above.

d. Assume you have to pay $2500 for legal fees, $1750 for title insurance and $900 for an appraisal. What is your effect cost of borrowing for this loan?

Related Book For answer-question

Precalculus

ISBN: 978-0321716835

9th edition

Authors: Michael Sullivan

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Posted Date: Oct 02, 2023 02:35 AM

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You qualify for a mortgage with a $2700 monthly payment. a. Determine the size of your loan

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To calculate these values we can use the formula for the monthly mortgage payment which is M Pr1rn 1rn 1 Where M Monthly Payment P Principal Loan Amou... View the full answer

Precalculus

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