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ally7343
 2 years ago
Help? Please and thank youu.[:
Sofia has a 5.2% fixed rate 30year mortgage in the amount of $350,000. The total cost of principal and interest is about $691,880. Which of the following is closest to Sofia’s monthly payment?
ally7343
 2 years ago
Help? Please and thank youu.[: Sofia has a 5.2% fixed rate 30year mortgage in the amount of $350,000. The total cost of principal and interest is about $691,880. Which of the following is closest to Sofia’s monthly payment?

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jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2There are 12 months in a year, so there are 12*30 = 360 months in 30 years So Sofia is making 360 equal payments (maybe the last payment will be slightly smaller than the rest)

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2so if she pays a total of $691,880 (ignoring the down payment), then we can say monthly payment = (Total Cost)/(Number of Payments)

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2tell me what you get for the monthly payment

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2same here, well I got 1,921.88888888889 and that rounds to 1,921.89 but that's close enough

ally7343
 2 years ago
Best ResponseYou've already chosen the best response.1Okay thank you! Mind helping with a few more?(:

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2what's the question

ally7343
 2 years ago
Best ResponseYou've already chosen the best response.1Bob has a 30year adjustable rate mortgage that has a rate of 2.8% for the first 3 years. The amount of the mortgage is $109,000. What is the monthly payment during this initial period?

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2There's a formula to calculate monthly payments, but it's easier to use a calculator

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2which one do you want to use?

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2ok let's use the calculator here's a good one http://www.bankrate.com/calculators/mortgages/mortgagecalculator.aspx if you type in 109000 in the first box, 30 in the box below that, then 2.8 in the box below that...then hit enter...you'll get your answer tell me what it gives you

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2oh when i mean "hit enter" i meant "hit calculate"

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2i'm getting the same

ally7343
 2 years ago
Best ResponseYou've already chosen the best response.1Okay. Emily obtains a $1,250,000 balloon mortgage for an investment property. The mortgage has terms of 30/5 at an interest rate of 3.5%. The monthly payment is $5,613.06. How much is the remaining balance after 5 years rounded to the nearest dollar?

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2let me look up what the 30/5 means real quick, one sec

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2hmm i think what the 30/5 means is that you pay the mortgage just as if it was a 30 year mortgage but at the end of 5 years, you would make a lump sum payment to pay off the remaining balance or refinance into some other type of mortgage that's what I'm reading here anyway http://www.mortgageqna.com/mortgageloantypes/5yearballoonmortgagedifferentfroma51arm.html

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2again, there's a formula to do this, but it's kinda a pain so that's why amortization calculators with amortization tables are very handy

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2remember that calculator link I sent you?

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2ok now type 1250000 in the first box 30 in the box below that and 3.5 in the box below that then hit "Show/Recalculate Amortization Table"

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2what that does is show you how much you've paid off for a given month and how much you have left on your balance at any given period of time

ally7343
 2 years ago
Best ResponseYou've already chosen the best response.1Alright, I got that part done.

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2if you scroll to Feb 2018, which is exactly 5 years from now, you'll see the remaining balance is 1,148,801.82 so this is how much left you still have to pay off

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2oh sry, i meant to say 1,121,213.41

jim_thompson5910
 2 years ago
Best ResponseYou've already chosen the best response.2and you would round this to the nearest dollar (like they instruct) to get 1,121,213
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