User Account

All Pages

Consideration the protection of mortgage insurance

Assignment Help Finance Basics
Reference no: EM132499654

Suppose you have just purchased your first home for $550,000. At the time of purchase you could only afford to commit to a down payment of $55,000. In order to make the loan, the lender requires you to obtain private mortgage insurance (PMI) on their behalf. Suppose over time you paid down the principal of the loan to $535,000 and at that point in time you can no longer make any mortgage payments (i.e., you default on the loan). If the lender were to foreclose on your property and sell it for $508,000 (net proceeds), what would the lender's loss of principal be taking into consideration the protection of mortgage insurance? (Let's assume that the PMI in this case covers the top 25% of the loan.)

Reference no: EM132499654

Questions Cloud

How much market risk does the portfolio have : You have a portfolio consisting of 20 percent Boeing (beta = 1.3) and 40 percent Hewlett-Packard (beta = 1.6) and 40 percent McDonald's stock (beta = 0.7).
Disadvantages of using the internal rate of return : What are the weaknesses or disadvantages of using the Internal rate of return (IRR) method as ped to the NPV method as a capital budgeting technique?
Cash flows for this project be during year : The firm's marginal tax rate is 40 percent. What will the cash flows for this project be during year 2?
Define a shallow vgg-like network : Define a shallow VGG-like network - implement the update rule as referred to Section 2.4 in the paper with the AGP training code (Step 3), and perform frequency
Consideration the protection of mortgage insurance : If the lender were to foreclose on your property and sell it for $508,000 (net proceeds), what would the lender's loss of principal be taking into consideration
How much will the couple need at the end of years : How much will the couple need at the end of 18 years to fund Jimmy's college education for 4 years? Round your answer to a whole number.
Purchase of a house with an appraised value : Consider the purchase of a house with an appraised value of $480,000, an actual sale price of $495,000.
Market-value balance sheets of the united frypan company : Here are book- and market-value balance sheets of the United Frypan Company (figures in $ millions):
Is the total shareholders equity shown in an entity : Is the total shareholder's equity shown in an entity's balance sheet equal to the entity's market capitalization at the reporting date?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd