Create an amortization schedule and answer the following questions for a $600,000 30 year fixed rate, constant payment mortgage that is partially amortizing with a balloon payment of $100,000 The contract interest rate is 3 25 with monthly payments Up front fees on the loan equal 3 0 and there is no pre payment penalty What is the annual percentage rate (APR) for the loan What is the effective interest rate (EIR) on the loan if prepaid at the end of year 7 3 What is the EIR if the loan is prepaid at the end of year 7 and there is a 2 prepayment penalty (Hint the prepayment penalty is 2 of the remaining balance

The Answer is in the image, click to view ...

Question: -Create an amortization schedule and answer the following questions for a $600,000 30-year fixed-rate, constant-payment mortgage that is partially-amortizing with a balloon payment of $100,000.

-Create an amortization schedule and answer the following questions for a $600,000 30-year fixed-rate, constant-payment mortgage that is partially-amortizing with a balloon payment of $100,000. The contract interest rate is 3.25% with monthly payments. Up-front fees on the loan equal 3.0% and there is no pre-payment penalty.

What is the annual percentage rate (APR) for the loan?
What is the effective interest rate (EIR) on the loan if prepaid at the end of year 7?

` 3.What is the EIR if the loan is prepaid at the end of year 7 and there is a 2% prepayment penalty? (Hint: the prepayment penalty is 2% of the remaining balance

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Please illustrate in excel templet. 1.) Constant Payment Mortgage [15 points] - Create an amortization schedule and answer the following questions for a S600,000 25-year fixed-rate, constant-payment...

Must complete in excel. 1.) Create an amortization schedule and answer the following questions for a $750,000 30-year fixed-rate, constant-payment mortgage that is partially-amortizing with a balloon...

Show in Excel please. 1.) Constant Payment Mortgage [15 points] - Create an amortization schedule and answer the following questions for a $600,000 25-year fixed-rate, constant-payment mortgage that...

Question 1 Constant Payment Mortgage [30 points] - Create an amortization schedule and answer the following questions for a $600,000 30-year fixed-rate, constant-payment mortgage that is partially...

Constant Payment Mortgage [30 points] - Create an amortization schedule and answer the following questions for a $600,000 30-year fixed-rate, constant-payment mortgage that is partially amortizing...

Using EXCEL: Create an amortization schedule and answer the following questions for a $600,000 25-year fixed-rate, graduated-payment mortgage loan that is fully-amortizing. The contract interest rate...

Constant Payment Mortgage [30 points] - In Excel create an amortization schedule and answer the following questions for a $750,000 15-year fixed-rate, constant-payment mortgage that is partially...

can you please answer this question on the excel sheet Question 1 Constant Payment Mortgage (30 points) - Create an amortization schedule and answer the following questions for a $750,000 15-year...

Show in excel please. 5.) Graduated Payment Mortgage [10 points] - Create an amortization schedule and answer the following questions for a S600,000 25-year fixed-rate, graduated-payment mortgage...

Create an amortization schedule and answer the following questions for a $600,000 30-year fully-amortizing CAM loan with monthly payments. The contract interest rate on the loan is 3.25% and there...

Which of the following is a trend that influences newspaperstoday? There is a growth in online newspapers. More cities are increasing the number of newspapers that areavailable. Cheaper newsstand...

How does a review of the financial statements of a nonpublic company differ from an audit?

Question 3 John Thompson, CEO of WVU, Inc., wants to raise $ 5 million in a private equity in his early - stage venture. Thompson projects net income of $ 1 8 million in year five ( five years from...

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.