Q: The owner of a property listed at $145,000 is
The owner of a property listed at $145,000 is considering two offers. Offer C is for $140,000 cash. Offer M is for $50,000 cash and a mortgage back to the vendor for $100,000 at a rate of 8% compounde...
See AnswerQ: You are interested in purchasing a house listed for $180,
You are interested in purchasing a house listed for $180,000. The owner seems quite determined to stay at the asking price, but you think that the true market value is $165,000. It may be that the own...
See AnswerQ: Solve the equations. 12x – 4(2x – 1
Solve the equations. 12x – 4(2x – 1) = 6(x + 1) – 3
See AnswerQ: The Phams are almost two years into the first five-year
The Phams are almost two years into the first five-year term of a 25-year $80,000 mortgage loan at 7.5% compounded semiannually. Interest rates on three-year term mortgage loans are now 6% compounded...
See AnswerQ: A $75,000 mortgage loan at 9% compounded semiannually
A $75,000 mortgage loan at 9% compounded semiannually has a five-year term and a 25-year amortization. Prepayment of the loan at any time within the first five years leads to a penalty equal to the gr...
See AnswerQ: A mortgage loan having a face value of $63,000
A mortgage loan having a face value of $63,000 is arranged by a mortgage broker. From this face value, the broker deducted her fee of $3000. The mortgage is written at a contract rate of 8% compounded...
See AnswerQ: A borrower has arranged a $105,000 face value,
A borrower has arranged a $105,000 face value, bonused mortgage loan with a broker at an interest rate of 10.8% compounded semiannually. Monthly payments are based on a 15-year amortization. A $5000 p...
See AnswerQ: A local mortgage broker has arranged a mortgage loan with a face
A local mortgage broker has arranged a mortgage loan with a face value of $77,500, which included a finder’s fee of $2500. The loan is to be amortized by monthly payments over 20 years at 7% compounde...
See AnswerQ: A borrower has the choice between two mortgage loans. Both are
A borrower has the choice between two mortgage loans. Both are to be amortized by monthly payments over 10 years. A mortgage broker will charge a fee of $2200 for an $82,200 face value loan at 10.25%...
See AnswerQ: Calculate the effective annual cost of borrowing for each of the following
Calculate the effective annual cost of borrowing for each of the following three financing alternatives. All interest rates are for a seven-year term and all mortgages use a 20-year amortization to ca...
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