A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out...
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A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM A young first-time homebuyer is considering the purchase of a HK$10 million property by taking out an 80% mortgage financing with the following terms: Tenor: 25 years, monthly payments Mortgage interest rate: "Prime" minus 2.5% p.a., Prime Rate is 5%. Standard deposit savings rate: 0.1% p.a. Suppose the following fixed-rate mortgage products are available for consideration. (1) Conventional fully amortized mortgage. (CPM) (2) Growing equity with a 4% increase in the monthly mortgage payments each year. (GEM) (3) Biweekly mortgage (BWM) (4) Graduated payment mortgage with three 5-year steps (3 jumps) and 8% step-up rate before the monthly payments level off. (GPM) (5) Deposit-linked mortgage with savings deposit of HK$500,000 required, deposit interest rate equal to prime minus 2.5% p.a. subject to the 50% cap provision. (DLM) (a) Fill in the following table. (15 points) Monthly Mortgage Payments (1st month) Mortgage Payback Period (Years) Total Interest Expense CPM GEM BWM GPM DLM
Expert Answer:
Answer rating: 100% (QA)
loan amount 8000000 time period 25 interest rate 25 Mortgage Monthly mortgage payment 1st month Payback Period years Total Interest Expense CPM 43333 25 2600000 GEM 44400 18 2009754 BWM 70000 14 13520... View the full answer
Related Book For
Fundamentals of Investing
ISBN: 978-0133075359
12th edition
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
Posted Date:
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