Please help solve this and please show all the steps to solve this step by step. Two years ago, Martin purchased a house for $100,000. Martin borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 6%. Payment terms are being made monthly to amortize the loan over 30 years. Martin has found another lender who will refinance the current outstanding loan balance plus all the costs associated with the new loan at 4.5% with monthly payments for 30 years. Suppose that the new lender will charge three discount points on the new loan and other refinancing costs will equal $3,000. What is the new loan amount if you choose to refinance? What is Martin's monthly payment for the new loan? What is the effective cost of Martin's new loan and do you refinance if he holds the loan for 30 years?

Please help solve this and please show all the steps to solve this step by step. Two years ago, Martin purchased a house for $100,000. Martin borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 6%. Payment terms are being made monthly to amortize the loan over 30 years. Martin has found another lender who will refinance the current outstanding loan balance plus all the costs associated with the new loan at 4.5% with monthly payments for 30 years. Suppose that the new lender will charge three discount points on the new loan and other refinancing costs will equal $3,000. What is the new loan amount if you choose to refinance? What is Martin's monthly payment for the new loan? What is the effective cost of Martin's new loan and do you refinance if he holds the loan for 30 years?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 25PROB

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Please help solve this and please show all the steps to solve this step by step in Excel. Two years ago, Martin purchased a house for $100,000. Martin borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 6%. Payment terms are being made monthly to amortize the loan over 30 years. Martin has found another lender who will refinance the current outstanding loan balance plus all the costs associated with the new loan at 4.5% with monthly payments for 30 years. Suppose that the new lender will charge three discount points on the new loan and other refinancing costs will equal $3,000. What is the new loan amount if you choose to refinance? What is Martin's monthly payment for the new loan? What is the effective cost of Martin's new loan and do you refinance if he holds the loan for 30 years?
Your friend has just purchased a house and has incurred a $150,000, 4.5% mortgage payable at $760.03 per month. After making the first monthly payment, he receives a statement from the bank indicating only $197.53 had been applied to reducing the principal amount of the loan. Your friend then calculates that at the rate of $197.53 per month, it will take 63 years to pay off the $150,000 mortgage. Discuss and explain whether your friend’s analysis is correct or not.
In order to buy a vacation home, Neal and Lilly took out a 20-year mortgage for $220,000 at an annual interest rate of 6%. After 10 years, they refinanced the unpaid balance of $142,125 at an annual rate of 4%. Use the table to find the monthly payments on the original loan; the monthly payments on the new loan; and the total amount saved on interest by refinancing. Click the icon to view a table of monthly payments on a $1,000 loan. The monthly payments on the original loan are $ (Type an integer or a decimal.)
Please show all steps in excel to solve this. Five years ago, Charles purchased a house for $500,000. Charles borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Charles has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. What is the monthly payment for the current loan? What is the new loan amount if Charles chooses to refinance? What is the monthly payment for the new loan? What is the effective cost of Charles new loan if he holds the loan for 30 years? If Charles wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?
Stephen has just purchased a home for $153,200. A mortgage company has approved his loan application for a 30-year fixed-rate loan at 4.75%. Stephen has agreed to pay 25% of the purchase price as a down payment. If Stephen made the same loan for 20 years, how much interest would he save? E Click the icon to view the table of the monthly payment of principal and interest per $1,000 of the amount financed. Stephen would save $ (Round to the nearest cent as needed.)
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 10 years ago for $61,760. The home was financed by paying 20% down and signing a 30-year mortgage at 8.1% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 120th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive?
Please show exactly how to solve this in excel and all steps in excel please. Five years ago, Charles purchased a house for $500,000. Charles borrowed a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Charles has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. What is the monthly payment for the current loan? What is the new loan amount if Charles chooses to refinance? What is the monthly payment for the new loan? What is the effective cost of Charles new loan if he holds the loan for 30 years? If Charles wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?
Mr. and Mrs. Smith have just purchased a $600,000 house and have made a down payment of $120,000.They can amortize the balance at 4% compounded monthly for 30 years.1. Using Excel, calculate monthly payments.2. Using Excel, calculate equity they have in their house (that is, what is the sum of the down paymentand amount paid on the loan) after 20 years?3. Using Excel, populate the following amortization table:PaymentNumberMonthly Payment RemainingPrincipalInterest for themonthAmount of monthlypayment going towards theprincipal160180240
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased the home 11 years ago for 68,158. The home was financed by paying 15% down and signing a 30-year mortgage at 9.3% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After their 132nd payment they applied to the loan company for the maximum loan. How much ( to the nearest dollar) will they receive? Amount of the loan ____
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They puchased their home 13 years ago for $61,752. The home was financed by paying 10% down and signing a 15-year mortgage at 8.4% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-year period. The net market value of the house is now $100,000, After making their 156th payment, they applied to the loan company for the maximum loan. How much (to the nearest dolar) will they receive? Amount of loan: $(Round to the nearest dollar)
Five years ago, Sam purchased a house of $500,000. Sam borrows a mortgage with 80% of LTV (loan to value ratio). The interest rate on the mortgage is 5%. Payment terms are being made monthly to amortize the loan over 30 years. Sam has found another lender who will refinance the current outstanding loan balance at 4.0% with monthly payments for 30 years. The new lender will charge two discount points on the new loan. Other refinancing costs will equal $2,000. Please show how to solve using excel and excel formulas a. What is Sam's monthly payment for the current loan? b. What is the new loan amount if Sam chooses to refinance? c. What is Sam's monthly payment for the new loan? d. What is the effective cost of Sam's new loan if he holds the loan for 30 years? e. If Sam wants to refinance today, at least how many years should he stay in the house (do not prepay)? Explain?
Some years ago, Penny purchased the car of her dreams for $25,000 by paying 20% down at purchase time and taking a $20,000, 5-year, 6% per year, compounded monthly loan with 60 monthly payments of $386.66 each. She is examining her loan situation and would like to have some specific information. Help her obtain the following: (a) Verification of the current monthly payment amount. (b) Total amount she will pay over the 5 years. (c) Total interest she will pay over the 5 years and the percentage this represents of the original loan amount of $20,000. (d) After she missed payment #36 at the very end of the third year, according to the loan agreement, the interest rate increased from 6% to 10% per year, compounded monthly. Based on the remaining principal immediately after the late payment, determine the new monthly payment. Verify that this increased amount is necessary to pay off the loan at the increased rate. (e) Penny is now in her fourth year, has paid the increased payment for 12…