Question: Part 2: Partially amortized fixed rate mortgage (CPM) Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage

Part 2: Partially amortized fixed rate mortgage (CPM)

  1. Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage is 40% amortized over the life of the loan. The original loan balance is 75% of the property's value when initiated, and the property is expected to appreciate at a rate of 2.0% annually.
  2. What is the remaining loan balance at the end of the holding period if the property owner sells the property after 73 months?
  3. Illustrate with a well-labeled graph the amount of equity the property owner builds throughout the holding period of the loan.
  4. What is the owner equity in the property when the property is sold?
  5. What is the NPV and IRR of this investment, if the property owner sells the property after 73 months?

Part 2: Partially amortized fixed rate mortgage (CPM) Create a monthly amortization

Im not sure how to set this up in excel, if you could show the steps i would greatly appreciate it! Thank you!

Part 2-Partially Amortized Fixed Rate Mortgage Month Beginning Interest Principal Payment Balance Mortgage Balance House Value Equity 1200000 165.33 1 2 3 4 4 5 6 7 7 Input Box: Initial Mortgage Amount Initial Loan-to-Value Interest Rate Additional Mothly Payment Holding Period Expected Annual Appreciation Rate Amortization $300,000 ?? 4.25% 590.33 77 ?? 40% 8 9 10 11 12 13 Output Box: Monthly Payment Original House Value Mortgage Balance at End of Holding Period Equity at End of Holding Period 77 ?? ?? ?? 14 15 16 17 18 INTEREST RATE LOAN AMOUNT PERIOD MONTNHLY PAYMENTS 0.35% 120000 360 -$590.33 19 20 21 22 23

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