What is the monthly mortgage payment

Assignment Help Financial Management
Reference no: EM131447764

1. What is the Monthly Mortgage Payment for a 15-yr fixed rate mortgage with an interest rate of 3.25%, 1 point and $2000 in fees on a home with a value of $200,000 and an LTV of 92%?

2. Evaluate and decide which of the following two mortgages is the best rate including points and fees:

a. 30-yr fixed rate mortgage with an interest rate of 4.5%, 1.5 points and $3000 in fees on a home with a value of $300,000 and an LTV of 80%

b. 30-yr fixed rate mortgage with an interest rate of 4.25%, 2 points and $4000 in fees on a home with a value of $300,000 and an LTV of 80%?

Reference no: EM131447764

Questions Cloud

How organizational behavior can aid you in decision-making : Discuss how these job skills can lead to improved job performance. Explain how Organizational Behavior can aid you in decision-making and problem-solving
What is a reverse mortgage : Compare & Contrast the Fixed Rate Mortgage with the Adjustable Rate Mortgage? What is a Reverse Mortgage? Who qualifies and what are the benefits and limitations?
Discuss various angles of the idealized family : Benefit of peer review or teacher input, a safe space to make mistakes and learn from them, and  a document which demonstrates your best effort at writing the essay, into which you have put much thought and effort.
What economic factors are taken into account when measuring : What economic factors are taken into account when measuring GDP? What makes GDP an effective measure of living standards? How might quality-of-life measures be determined and measured?
What is the monthly mortgage payment : What is the Monthly Mortgage Payment for a 15-yr fixed rate mortgage with an interest rate of 3.25%, 1 point and $2000 in fees on a home with a value of $200,000 and an LTV of 92%? Evaluate and decide which of the following two mortgages is the best ..
Purse according to the multiplier effect : How much will GDP rise when Kim K buys her purse according to the multiplier effect? I am having trouble finding a formula that mentions when GDP rises. Is this the consumption function?
Analyze two companies of the same industry : Drawing on your reading for this module and your professional experience, research and analyze two companies of the same industry, each in a different and unique developing country or region
Biggest rival goes bankrupt and exits the market : Suppose Firm A sets a price below average variable cost for two years. After the second year, Firm A's biggest rival goes bankrupt and exits the market. In the third year, Firm A raises prices significantly. Firm A is practicing:
Identify the culture of the patient and discuss : You will be providing care for patients of different cultures. Choose a diet that would be cultural specific for a patient with new onset of hypertension. Identify the culture of the patient and discuss how you would explain this diet to your pati..

Reviews

Write a Review

Financial Management Questions & Answers

  Company capital structure weights on book value basis

Filer Manufacturing has 5 million shares of common stock outstanding. The current share price is $71, and the book value per share is $6. The company also has two bond issues outstanding. What are the company's capital structure weights on a book val..

  Debt magnifies potential gains and losses to shareholders

We know that the use of debt magnifies potential gains and losses to shareholders. Given that there are taxes and financial distress costs, is there an easily identifiable debt/equity ratio (leverage) that will maximize the value of the firm? Why or ..

  Proposition that the stock market is weakly efficient

Which of the following contradicts the proposition that the stock market is weakly efficient?

  How much is deductible

"Steve, who is single, has $100,000 of salary, $10,000 of income from a limited partnership, and a $25,000 passive loss from a real estate rental activity in which he actively participates. His modified adjusted gross income is $100,000. Of the $25,0..

  Outstanding after the stock repurchase is completed

A firm has a market value equal to its book value. Currently, the firm has excess cash of $525 and other assets of $9,200. Equity is worth $7,000. The firm has 1,000 shares of stock outstanding and net income of $420. The firm has decided to spend al..

  Importance of sound decision-making in risk

For the first time in a very long time, the concept of financial risk and risk management has become a topic of concern at Presidential press conferences. Such concern has centered on esoteric financial products such as derivatives that are used to m..

  What will portfolios net beta be after these transactions

You have a $1million portfolio consisting of $250,000 investment in each of 4 different stocks. The portfolio has a beta of 2.0. you are considering selling $250, 000 worth of one stock with beta of 1.6 and using the proceeds to purchase another stoc..

  Should the investment be undertaken

The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. The firm will also be required to spend $10,000 to close down the project at the end of the three years. If the cos..

  How are net present value and internal rate of return

How are Net Present Value (NPV) and Internal Rate of Return (IRR) related? Which is the better decision rule to follow for project selection or rejection? Why? There have been two 'modifications' in discounted cash flow metrics. First, the Internal R..

  What is the company WACC

You are given the following information for Watson Power Co. Assume the company’s tax rate is 30 percent. Debt: 9,000 6.4 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 107 percent of par; the bonds make semiann..

  The after-tax cashflows generated by the two-year

Cnooc, a Chinese public-sector company, has made a bid to purchase Unocal, a big U.S oil company, for $18.5 billion in June 2005. Treat this as an initial investment made by Cnooc in this two-year, U.S based project. If the after-tax cashflows genera..

  The pros and con of debt financing

Presentation to the Board of Directors, The Pros and Con of Debt Financing. The calculation of after-tax cost of debt plays a role in managing capital costs. You have been asked to present a few matters related to Debt (Bond) financing to the Board o..

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!

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