Financed the remainder with a 4% mortgage

Reference no: EM13712048

(1-4) Wally Bee purchased a new home for $250,000 with a $40,000 down payment. He financed the remainder with a 4% mortgage for 30 years.
QUESTION 1

What is his monthly payment?

$1089.66

$946.31

$988.32

$1002.54

QUESTION 2

If Wally had originally planned on using a 15 year mortgage (also at 4%), how much would Wally save in interest expense compared to the 30 year mortgage?

$72,658

$67,344

$81,308

$63,564

QUESTION 3

Prepare a two month amortization schedule. (Round interest factor to 4 decimals) What is the principal reduction for month 2?

Month Loan Balance Payment InterestPrincipal
0
1
2

$310.56

$351.54

$401.65

$388.21

QUESTION 4

Wally's bank has offered to lower the 4% interest rate on his 30 year loan to 3.75% if Wally will pay 1 1/4 points. What will the points cost Wally?

$1895

$2625

$3155

$3365

QUESTION 5

Tedd E. Bear has an annual salary of $48,000 with no other loans outstanding. Using the 25% guideline from class and with a 20% down payment, how expensive of a home can Tedd purchase using a 4%, 30 year mortgage?

$251,353

$268,246

$279,423

$261,825

need answers in 50 min,is it possible?

Reference no: EM13712048

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