User Account

All Pages

What is the current loan balance

Assignment Help Operation Management
Reference no: EM132951478

A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years.

1. What is the monthly payment?

2. What is the current loan balance?

3. Assume this is homeowner has been offered a chance for refinance for the amount at the current balance for 22 years at 10.5% interest rate. What is the monthly payment if the homeowner chooses to refinance?

4. If the origination fees and closing costs are $25,500, and the costs are not financed by the lender. What is the effective cost of refinancing? Should this homeowner refinance?

5. If this homeowner plans to sell the house in 5 years, should this homeowner refinance (show your answer with the effective annual rate)?

Reference no: EM132951478

Questions Cloud

Confidence interval for the mrp in the us : Suppose the annual standard deviation of S&P 500 return were 20% for this period. What is your 95% confidence interval for the MRP in the U.S.
Hbr case study-agnico eagle mines ltd : "Discuss the estimation of the value of the items related to tax loss as well as the impact of the other valuation items shown in case Exhibit 11." However, I c
Calculate the present value of an ordinary annuity : Calculate the Present Value of an ordinary Annuity (PVA) that includes 12 payments of $ 200 and an interest rate of 9%
Computing the interest rate : Compute the interest rate if future value (FV) = $6,335, present value (FV) = $3,575, and number of years (t) = 7. (Do not round intermediate calculations and r
What is the current loan balance : A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years.
Identifying and calculating the key metrics : Identifying and calculating the key metrics that will be used to analyze the decision. This might include proforma financials, NPV, IRR, Payback, ROIC
What is the monthly payment : A borrower made a constant payment mortgage loan 8 years ago for $400,000 at 12 percent interest for 30 years.
Explain rectification cost : a) Calculate the amounts which should appear in the income statement and statement of financial position of Amar Limited at 31 March 2020 in respect of the abov
Define the risk adjusted uncovered interest rate parity : Consider a two-country open economy, consisting of United States (home country) and Japan (foreign country) and answer the following questions:

Reviews

Write a Review

Operation Management Questions & Answers

  How do we each individually define leadership

How do we each individually define leadership and how did we come to our current level of understanding?

  What is the goal for the portfolio

List one portfolio of projects for one beverage company. What is the goal for the portfolio?

  How the utility theory can help you determine pricing

Evaluate what information is needed to assess the company's cost and revenue relationship. What does this information tell you about the company?

  United states learn from lessons abroad

What lessons can public agencies in the United States learn from lessons abroad?

  Reflect on your teamwork experience and share the good

Describe one workplace scenario in which understanding of these five stages could have helped you work more effectively with a team.

  Why they ineffectively handle logistics activities

Choose an organization or company that has a poor logistics mandate or footprint and perform an analysis of why they ineffectively handle logistics activities.

  Multiple regression of interest rates and disposable income

A researcher looks at moving average data on store sales a wishes to perform a multiple regression of interest rates and disposable income. What is a particular concern when performing time series multiple regression? a. homoscedasticity b. autocorre..

  Implemented new electronic medical records system

You are the administrator of a rural community health center. The community health center has just implemented a new electronic medical records (EMR) system.

  Detailing the confidentiality requirements

Question: Explain in detailing the confidentiality requirements in place within the organisation and give some examples?

  Sale to general public is simply entered into cash register

Develop an activity diagram for each scenario. Complete a fully developed use case description. A sale to the general public is simply entered into the cash register, and a paper ticket is printed as the items are identified. Payment can be by cash, ..

  Structure themselves to be able to evolve successfully today

Kotter provides a prescription for how organizations need to structure themselves to be able to evolve successfully today.

  Strenghts and weakneses to lowes vision statement

Please Explain if Lowe's Vision Statement describes where the company wants to go in the future, manger's aspirations for the company and the course of direction to achieve them. in other words, what are the strenghts and weakneses to Lowe's Vision S..

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