Ann obtains fully amortizing fixed rate mortgage

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Reference no: EM131978175

1. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)?

2. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Ann’s 20th payment goes to interest?

3. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Ann’s 20th payment goes to principal?

4. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage A?

Reference no: EM131978175

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