Question: please show excel formula inputs 1. Amortizing a Loan: Despite COVID-19's shock to the economy, the housing market has been very strong. After waiting for

please show excel formula inputs 1. Amortizing a Loan: Despite COVID-19's shockplease show excel formula inputs

1. Amortizing a Loan: Despite COVID-19's shock to the economy, the housing market has been very strong. After waiting for months for the price to come down but only seeing it keeps going up, you finally capitulated and decided to buy your first house. You found a house in Summerlin that you like and will cost you $345,000. Wells Fargo checks your credit history and informs you that you can borrow a 30-year, 2.9%-APR, monthly compounded mortgage loan for up to $330,000. You have saved $28,000, of which $3,000 will be used for closing costs, and the rest as down payment. Build an amortization table and show: (10 points) 1.1. What will your monthly mortgage payment be? 1.2. Show for each month the amount paid towards interest payment and the amount paid towards principal reduction. 1.3. Plot a 100% Stacked Area graph for 1.2, showing how the interest payment and the principal payment will change over the life of the loan. Label each axis clearly. 1.4. Since you will not pay down 20%, you will have to pay PMI per month until the remaining principal balance is below 80% of the original house price. For how many months will you need to pay PMI

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!