If you take out a 30-year $100,000 fixed rate loan at 7 ½ % with no points, your monthly payment will be $700. However, if you add two points ($2,000), the rate could drop to 7%. What will be your monthly savings? What will be the total savings over the term of the loan?
Melissa Fromer took out a fixed rate 30-year mortgage from Citizens Bank at 7.38% with 5% down along with 2.75 points. Assuming the home lists for $150,000 what amount did Melissa pay for the points?
The Chicago Sun-Times, reported that the average price of both new and existing houses has increased. San Francisco tops the list at $295,500. Denver was number 10 at $186,800. Your company has an office in both cities, and you may be transferred to one of these cities. Both houses require 20% down, 8 ½ % interest and a 30-year fixed rate mortgage. What would be the monthly payments in each city?
Jill Smith was looking at a 2-bedroom, 2-bath loft condo in California. Listing price $189,000 with 20% down payment and a 30-year fixed rate mortgage at 7 ½% . Property taxes $189 a month and condo fee $288 a month. What will beJill's monthly payment, including property taxes and condo fee?
The Philadelphia Inquirer reported on 15-year versus 30-year fixed rate mortgages. The total interest for 15 years would be $72,000 and $164,000 for 30 years; this is based on a $100,000 loan at 8%. Doug Tweeten wants to take advantage of this savings. (a) How much would his monthly payments be on a 15-year loan? (b) How much would his monthly payments be on a 30-year loan? (c) How much more would he pay each month on a 15-year loan?
Sandra Jordon will be able to obtain a 6 ½% 25-year loan. This loan is for $180,000. However, she must pay 1 point. She is interested in knowing how much of her beginning payments will go toward interest and what will go toward the principal. (a) What must Sandra pay in points? (b) What will be the monthly payment? (c) Provide an amortization schedule for her first three payments.
Jesse Garza wants to avoid paying private mortgage insurance and has to put 20% down. The most Jesse has for a down payment is $43,000. His bank is offering 15-year fixed loans at 6 ½%. (a) What is the most Jesse can pay for a home? (b) Based on what he can afford, what would be Jesse's monthly payments?
Jane Ryman bought a home for $116,333 with $3,490 down, 30-year fixed rate at 7 ½%. What will be her total interest when the home is paid?
Pat Brown bought a new townhouse in Alabama for $20,000. She put down 20% and got a mortgage for 25 years at 7%. What is (a) Pat's monthly payment and (b) total interest cost of the loan?
Sue Trentacosti is concerned about the financing of a home. She saw a small cape that sells for $100,000. If she puts 10% down, what will her monthly payment be at (a) 25 years, 6 ½%; (b) 25 years, 7%; (c) 25 years, 7 ½%; and (d) 25 years, 8%? What is the total cost of interest over the cost of the loan for each assumption?
