Mortgage question?
You take out a mortgage today of $350,000 with a 25-year amortization period, a
5-year term, and a 6.25% (annual) posted mortgage interest rate. Suppose four
years from today, you decide to refinance your mortgage at a 5.50% (annual)
mortgage interest rate. Also, you would like to increase your payment frequency
from monthly to weekly. (Assume your mortgage payments are made at the end
of each month or week).
(a) What is your original monthly payment on the mortgage? (5 marks)
(b) What is the remaining balance on the mortgage after 4 years?
(c) What will be your weekly payment on the refinanced mortgage? (There
are 52 weeks in a year.
(d) Are you paying more or less on a monthly basis once you refinance your
mortgage if your discount rate is 8%, compounded annually? (Assume
that there 4.3333 weeks per month)
5 years from now YOU will not find a 5.5% annual rzte except in your dreams . Do your homework else where please.
LoanSifter 3.0: Today’s Rates
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The Great Mortgage Collapse $20.5 This book covers the mortgage industry yesterday and today. It tells why it collapsed and provides insight into where it will go… |
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Residential Mortgage Lending: Principles and Practices $88.99 This text is designed for both employees of mortgage lenders and individuals studying real estate finance who want to enhance that study with practical residential mortgage lending principles and practices. The author provides a thorough overview of mortgage lending today and outlines the practices of mortgage businesses to compete successfully in this competitive market. The mortgage lending industry has experienced significant changes resulting in a new economy. Addressing the SAFE Act and other new mortgage regulations governing the lending industry, this edition has a new emphasis on the practical applications of mortgage lending making it an excellent resource for learning residential mortgage lending operations. Each step of the mortgage process is covered while clearly explaining the fundamentals in an easy-to-understand manner. No prior knowledge of real estate finance or any part of mortgage lending is required. Students will gain practical knowledge on residential lending business, and mortgage professionals will find this to be a valuable resource. |
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