Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Make Nu Mortgage Company is offering home buyers a new mortgage instrument called the Stable Home Mortgage. This mortgage is composed of both a fixed rate and adjustable rate component. Mrs. Maria Perez is interested in financing the purchase of a new home. The home, which costs $100,000, is to be financed by Stable Home Mortgages (SHM) on the following terms:The SHM requires a 5 percent down payment, costs the borrower 2 discount points, and allows 75 percent of the mortgage to be fixed and 25 percent to be adjustable. The fixed portion of the loan is for 30 years at an annual interest rate of 10.5 percent. Having neither an interest rate cap nor payment cap, the adjustable portion is also for 30 years with the following terms:
Initial interest rate = 9 percent
Index = 1-year Treasuries
Payments adjust each year
Margin = 2 percent
Interest rate cap = None
Payment cap = None
The projected one-year U.S. Treasury-bill index, to which the ARM is tied, as follows BOY2 = 10 percent; BOY3 = 11 percent; BOY4 = 8 percent; BOY5 = 12 percent.
Calculate Mrs. Perez's total monthly payments and end-of-year loan balances for the first five years. Calculate the lender's yield, assuming Mrs. Perez repays the loan after five years.
1. MakeNu Mortgage Company is offering home buyers a new mortgage instrument calledthe Stable Home Mortgage. This mortgageis composed of both a fixed rate and adjustable rate component. Mrs. Maria Perez is interested in financingthe purchase of a new home. The home,which costs $100,000, is to be financed by Stable Home Mortgages (SHM) on thefollowing terms:
a. TheSHM requires a 5 percent down payment, costs the borrower 2 discount points,and allows 75 percent of the mortgage to be fixed and 25 percent to beadjustable. The fixed portion of theloan is for 30 years at an annual interest rate of 10.5 percent. Having neither an interest rate cap norpayment cap, the adjustable portion is also for 30 years with the followingterms:
Initialinterest rate = 9 percent
Index= 1-year Treasuries
Paymentsadjust each year
Margin= 2 percent
Interestrate cap = None
Paymentcap = None
The projected one-year U.S.Treasury-bill index, to which the ARM is tied, as follows BOY2 = 10 percent; BOY3 =11 percent; BOY4 = 8 percent; BOY5 = 12 percent.
Calculate Mrs. Perez'stotal monthly payments and end-of-year loan balances for the first fiveyears. Calculate the lender's yield,assuming Mrs. Perez repays the loan after five years.
b. Repeatpart (a) under the assumption thatthe initial interest rate is 9.5 percent and there is an annual interest ratecap of 1 percent.
A company is in a 43% tax bracket. It invests in assets that increase the depreciation expense by $606 per year. What’s the change in cash flow?
What are the benefits and liabilities of using a software package to help write a business plan or hiring consultants to write the business plan for you?
materials requirement analysis and planningshow ways the company you researched could benefit or more likely already is
A time in which you or someone else challenged the process, yet were met with resistance by those in leadership or other stakeholders.
Examine the influence that legal issues, ethics and corporate social responsibility have had on management planning in the U.S military. Provide at least one example for each; planning, organization, leadership, and controlling.
As you serve at a firm where worker job descriptions are broad, you often find yourself working in new areas on a assignment basis. You are one of the competent workers that the VP has selected to form into a team to create an Employee Handbook.
Bargain furniture store management - Which evaluation tools would you utilize to ascertain the needs and expectations of your customers?
List five important factors that should be in the project review and is it important to tell the sponsors what they want to hear, or the truth about the actual status of the project?
This is for a leadership and organization behaviour class one of the factors that indorse Passive or Defensive Cultural Norms, which include avoidance at the worker level is goal setting.
Explain a business process and give an example
Business-to-customer exchanges between the e-business's business/organizational customers and its individual consumer network of online users and visitors. B2B-pattern e-marketing processes that entail exchanges among business/organization customer..
What should be the main message of a united anti-Globalization
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd