How much does our escrow add to our monthly loan payment

Assignment Help Finance Basics

Reference no: EM132005282

Question: A) How much, rounded to the nearest dollar, would we have to deposit now into an account paying 0.6125% compounded annually to have 25% down payment on a $547,800 house six years and eight months from now?

B) How much less, rounded to the nearest dollar, would we have to deposit to have our down payment of we could earn 6 1/8 % compounded continuously of 0.6125% compounded annually?

C) If the escrow on our loan for the house in part A) consists of liability insurance that is $ 9865 per year, mortgage insurance that is 0.81% of the amount we had to borrow for the house in part A), and annual property taxes are 1.09% of the assessed value [ which is the selling price of the house in part A)], how much does our escrow add to our monthly loan payment?

Reference no: EM132005282

Questions Cloud

What is the term used to identify the risk : ACC504 Advanced Auditing Questions - What is the term used to identify the risk that the client's financial statements may be materially false and misleading

How much would you pay today for a zero-coupon bond : How much would you pay today for a zero-coupon bond maturing in 8 years? A company with similar risk has a bond maturing the same day that yields 8%.

What is the yield to call : Multiplex Entertainment bonds are currently selling for $1,160 and have a par value of $1,000. They pay a $95 annual coupon and have a 15-year maturity.

Socialism and democracy in theory of fascism : Explain why Mussolini had such contempt for democratic politics, socialism and democracy in his theory of Fascism.

How much does our escrow add to our monthly loan payment : How much, rounded to the nearest dollar, would we have to deposit now into an account paying 0.6125% compounded annually to have 25% down payment on a $547,800.

Prepare a paper detailing the role of corrections officials : Prepare a paper detailing the role of corrections officials. At a minimum, your paper should explain the corrections officers' place within the social roles.

Social and political doctrines of fascism : Identify some of the positive moral benefits that war brings to a society according to Benito Mussolini in The Social and Political Doctrines of Fascism.

Eruption of brutal warfare in europe : How and why does she see the eruption of brutal warfare in Europe in 1914 as but an extension into Europe of European imperialism

Why should the investor purchase the bond : How much would ana investor be willing to pay for a $1000, 10 percent coupon bond, with 23 years to maturity if the investor requires a 9 percent return.

User Account

All Pages