Negative amortization fixed rate mortgage (CPM)

1. Create a monthly amortization schedule for a negatively amortized $250K, 5yr, 4.75% fixed rate mortgage. The monthly payments on the mortgage are $700. The original loan balance is 97% of the value of the house when initiated and the house is expected to depreciate at a rate of 1.50% annually.
2. What is the remaining loan balance at the end of the holding period if the homeowner sells the home after 59 months?
3. Illustrate with a well-labeled graph the amount of equity the homeowner builds throughout the holding period of the loan.
4. What is the owner equity in the house at the time the house is sold?

Part 3-Negativelly Amortized Fixed Rate Mortgage Beginning Month Interest Principal Payment Balance Mortgage Balance House Value Equity Input Box: Initial Mortgage Amount Initial Loan-to-Value Interest Rate Additional Monthly Payment Holding Period Expected Annual Appreciation Rate Monthly Payment ?? ?? ?? ?? ?? ?? $700.00 Output Box: Original House Value Mortgage Balance at End of Holding Period Equity at End of Holding Period ?? ?? ?? Part 3-Negativelly Amortized Fixed Rate Mortgage Beginning Month Interest Principal Payment Balance Mortgage Balance House Value Equity Input Box: Initial Mortgage Amount Initial Loan-to-Value Interest Rate Additional Monthly Payment Holding Period Expected Annual Appreciation Rate Monthly Payment ?? ?? ?? ?? ?? ?? $700.00 Output Box: Original House Value Mortgage Balance at End of Holding Period Equity at End of Holding Period