What is the owner equity in the house

Reference no: EM132029876

Question: Partially amortized fixed rate mortgage (CPM)

A. Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage is 40% amortized over the life of the loan. The original loan balance is 75% of the value of the house when initiated and the house is expected to appreciate at a rate of 2.0% annually.

B. What is the remaining loan balance at the end of the holding period if the homeowner sells the home after 73 months?

C. Illustrate with a well-labeled graph the amount of equity the homeowner builds throughout the holding period of the loan.

D. What is the owner equity in the house at the time the house is sold?

Reference no: EM132029876

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