# I need help with this finance homework. I need to see all 12416

| November 13, 2015

need help with this finance homework. I need to see all solutions worked and need this by 4pm tomorrow night.

Question 2

Note: The information presented here applies to questions 2 and 3. You are considering

borrowing the \$185,000 you need to purchase your home using a 30-year mortgage with a

fixed annual rate of 5%. There are no points, but the loan comes with a prepayment penalty

equaling 3% of the remaining mortgage balance.

What is the penalty that must be paid if the balance of the loan is repaid after making

payments for three years?

Question 3

If the loan balance is repaid after making payments for three years, what is the effective cost

of borrowing?

Question 4

Your broker has just called to inform you that your offer on a lovely new studio apartment in

Gramercy Park has been accepted. You will finance 80% of the \$560,000 purchase price with

a 3/1 ARM with an initial rate of 3.75%. What is the mortgage payment that you will make

each month for the first three years of the loan?

Question 5

Note: The information presented here applies to questions 5, 6, 7, 8 and 9. Two different

families, the Smith family and the Jones family, have taken out identical mortgages. Each

has borrowed \$320,000 using a 5/1 ARM with an initial fully-indexed rate of 4.25% and

neither family paid any points at origination. The fully-indexed rate is determined by the

yield on the LIBOR index plus a margin of 250 basis points.

What was the yield on the LIBOR index at the time when each family purchased their house?

Question 6

If the rate determining payments for the first five years of the loan equals the fully-indexed

rate, what is the balance remaining at the first reset date?

Question 7

If, at the first reset date, the yield on the LIBOR index is 2.25%, what is the scheduled

monthly payment for the sixth year of the loan?

Question 8

The Smith family plans on selling their house at the end of four years. What is their effective

cost of borrowing?

Get a 5 % discount on an order above \$ 150
Use the following coupon code :
2020Discount

Category: Homework Help

Our Services:
Order a customized paper today!
Hello, we are here to help with your assignments