What will you owe the bank

Assignment Help Finance Basics

Reference no: EM13258337

You are 62 years old, and your house appraises for $450,000. A bank is willing to give you a reverse mortgage at 50% LTV with a 6% fixed contract rate. You choose an option to receive equal monthly payments over a period of 10 years.

a) What will these payments be?
b) If you choose to move after 5 years, what will you owe the bank?
c) If the home appreciates at 1%, how old will you be before your loan balance exceeds the value of the home?

Reference no: EM13258337

Questions Cloud

What is the equilibrium current : A coil with an inductance of 14.5 H and a resistance of R = 4.0 ohms is suddenly connected to a resistanceless battery with E = 184.2 V. What is the equilibrium current

Explain how judges are nominated within this system : Arizona has a plural executive. Identify each of the constitutional officers included in Arizona's plural executive in order of succession, as well as the two positions not included in succession.

What is the steady-state concentration : A simple way to model air pollution over a city is with a box model that assumes complete mixing and limited capability for the pollution to disperse horizontally or vertically except in the direction of the prevailing winds.

Compute the ground-state energy : The period of a macroscopic pendulum made with a mass of 10 g suspended from a massless string 50 cm long is 1.42 s. Compute the ground-state (zero-point) energy

What will you owe the bank : If the home appreciates at 1%, how old will you be before your loan balance exceeds the value of the home?

The number of random numbers it takes before a number : Write a sequence of sentences that use the random generator command rand to determine: (a) The number of random numbers it takes to add up to 20 (or more).

Does the author note their criteria for evaluation : Does the author note their criteria for evaluation (explicitly or implicitly) and did you find the criteria effective? What else do you want to know about the standards for this evaluation?

What amount of units be sold to realize operating income : If fixed costs are $600,000 and the selling price per unit is$160 and the variable cost per unit is $60, what amount of units must be sold in order to realize an operating income of $200,000?

Different ways to convert from accrual to cash accounting : What are some different ways to convert from accrual to cash accounting?

User Account

All Pages