Part One Please answer the following questions for a fixed-rate mortgage as a fully amortizing mortgage loan made for $175,000 at 4.5% interest for…

Part One

Please answer the following questions for a fixed-rate mortgage as a fully amortizing mortgage loan made for $175,000 at 4.5% interest for 30 years.

What is the monthly payment for a Constant Payment Mortgage (CPM) loan?

What will the total of payments be for the entire 30 year period? Of this total, how much will be interest?

Assume the loan is repaid in the end of 8 years. What will be the outstanding loan balance paid at that time? How much total interest will have been collected by then?

Assume the borrower chooses to reduce the loan balance by $5000 at the end of year 8. What will be the new loan maturity date assuming that loan payments are not reduced?

Part Two

Please answer the following questions for an adjustable-rate mortgage under the following conditions: an Adjustable Rate Mortgage (ARM) for $140,000 is made at the time when the expected start rate is 6%. The loan will be made with the teaser rate of 3% for the first year, after which, the rate will be reset. The loan is fully amortizing, has a maturity of 25 years, and will be made monthly.

What will the monthly payments (principle and interest) be during the first year?

Assuming that the reset rate is 7% at the beginning of Year (BOY) 2, what will the monthly payments be (principle and interest) beginning in Year 2 through Year 25?

By what percentage will monthly payments increase from Year 1 to Year 2?

What if the reset date is three years after loan origination, and the reset rate is 8%. What will the monthly payments be (principle and interest) beginning in year 4 through year 25?

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10