How much of the original loan balance is remaining

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Reference no: EM131063970

1. Suppose you have taken out a $200,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 4.25%. In month 2 of the mortgage, how much of the monthly mortgage payment does the principal repayment portion consist of?

A. $705.51

B. $708.33

C. $796.22

D. $799.04

2. Suppose you have taken out a $125,000 fully-amortizing fixed rate mortgage loan that has a term of 15 years and an interest rate of 6%. After your first mortgage payment, how much of the original loan balance is remaining?

A. $1,054.82

B. $120,603.78

C. $124,570.18

D. $124,875.56

3. Assume you have taken out a partially amortizing loan for $325,000 that has a term of 7 years, but amortizes over 30 years. Calculate the balloon payment at maturity (Year 7) if the interest rate on this loan is 4.5%.

A. $1,646.73

B. $118,468.21

C. $282,835.42

D. $324,572.02

4. Let’s assume that you have just taken out a mortgage loan for $200,000 with an origination fee of 2 points due upfront. The mortgage term is 30 years and the mortgage rate is fixed at 4%. What is the cost of the origination fee in dollar terms?

A. $400.00

B. $954.83

C. $4000.00

D. $4954.83

Reference no: EM131063970

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