Question: You need a 3 0 - year, fixed - rate mortgage for $ 2 0 0 , 0 0 0 with monthly payments. One lender

You need a

30 -

year, fixed

-

rate mortgage for $

200, 000

with monthly payments. One lender offers

9.5 %

with no discount points, while another offers

9 %

with some points. How many points need to be charged on the second loan to give both loans the same nominal yield? Assume no other fees are charged on either loan.

You need a 30-year, fixed-rate mortgage for $200,000 with monthly payments.

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!

Number 6 Assignment #5: Mortgage Calculations Due Thursday November 8 (in class) Valuing a Series of Loan Payments: question 1: What would the value of 360 payments of $1,000 per month be to a...

Number 5 Assignment #5: Mortgage Calculations Due Thursday November 8 (in class) Valuing a Series of Loan Payments: question 1: What would the value of 360 payments of $1,000 per month be to a...

Calculating the payment on a loan: Question 2: A borrower wants to take a 30 year fixed rate mortgage for $166,791.61 with monthly payments. If the interest rate on these loans is 6% annually...

Annn found an apartments that costs $800000 to buy. She will make $100000 down payment and will get $700000. It will be fully amortized 30 year fixed rate mortgage at 4.25% with monthly payments and...

please answer well and for the part 2 questions please show work in any format you want Part I .Multiple choice: For each of the questions below, select one and only one answer. PUT THE LETTER IN THE...

Problem 1 You decide to buy a house with price of $250,000. You put 20% down payment and consider a 30-year fixed rate mortgage to pay the remaining balance. The lender offers you four choices of the...

You decide to buy a house with price of $500,000. You put 20% down payment and consider a 15-year fixed rate mortgage to pay the remaining balance. The lender offers you three choices of the mortgage...

Please Help, thank you ! Problem 4 [25 points] You decide to buy a house with price of $500,000. You put 20% down payment and consider a 15-year fixed rate mortgage to pay the remaining balance. The...

Problem 4 [25 points] You decide to buy a house with price of $500,000. You put 20% down payment and consider a 15-year fixed rate mortgage to pay the remaining balance. The lender offers you three...

using this skeleton code: WELCOME _ TEXT = ' ' ' MORTGAGE PLANNING CALCULATOR = = = = = = = = = = = = = = = = = = = = = = = = = = = = ' ' ' MAIN _ PROMPT = ' ' ' Enter a value for each of the...

You have decided to start a lawn service business to help pay your tuition so that you can complete your undergraduate accounting degree. You plan to provide various lawn maintenance services that...

The mean score on the Stats exam was 75 points with a standard deviation of 5 points, and Gregor's z-score was 2. How many points did he score?

Triangular foreign exchange arbitrage is the set of transactions that allows to get immediate profit that can be derived from the differences in declared exchange rate between the two currencies and...

CT Corp Comprehensive Question Canadian Tire Corporation, Limited (Canadian Tire) is a family of companies that includes a retail segment and a financial services division, among others. The retail...

Understand different leadership styles, the importance of role modeling and focusing the entire organization on the frontline.

Know the difference between service climate and culture, and describe the determinants of a climate for service.

Understand the relationship between customer satisfaction and loyalty.