An investor bought a $400,000 property by putting 10% down (that is the initial equity, 10%...

  

 

 

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An investor bought a $400,000 property by putting 10% down (that is the initial equity, 10% of the value of the property) and financing the rest using a 15 year loan with a rate of 3.2%. Determine the monthly rate of return if a buyer had used the 30 year rate, sold the property for $450,000 after 8 years and had monthly rental income of $400 over the last 7 years (out of the 8 years total). Create a data table with the monthly return as the output. The row input is the monthly rental income, start with $0 and go to $800 in increments of $200. Report your results. What considerations go into whether to use a 30 year loan or a 15 year loan? An investor bought a $400,000 property by putting 10% down (that is the initial equity, 10% of the value of the property) and financing the rest using a 15 year loan with a rate of 3.2%. Determine the monthly rate of return if a buyer had used the 30 year rate, sold the property for $450,000 after 8 years and had monthly rental income of $400 over the last 7 years (out of the 8 years total). Create a data table with the monthly return as the output. The row input is the monthly rental income, start with $0 and go to $800 in increments of $200. Report your results. What considerations go into whether to use a 30 year loan or a 15 year loan?

Answer rating: 100% (QA)

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