The Weymans have saved $250,000 toward the purchase of their first home. They need $12,000 for legal
Question:
The Weymans have saved $250,000 toward the purchase of their first home. They need $12,000 for legal costs and moving expenses. After thorough investigation, they made a $890,000 offer on a two-bedroom condominium subject to arranging financing. The current interest rate on a five-year term fixed-rate mortgage with a 25-year amortization is 3.2% compounded semiannually.
1.Calculate their monthly payments rounded to the higher $10.
2.Show the first three lines of the amortization schedule.
3.The mortgage contract entitles the borrower to increase the amount of the regular payment by up to 10% once each year. How much will the amortization period be shortened if, after 2 years they will increase the payments by 10%?
Dynamic Business Law The Essentials
ISBN: 978-0073524979
2nd edition
Authors: Nancy Kubasek, Neil Browne, Daniel Herron