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ally7343

  • 2 years ago

Help? Please and thank youu.[: Sofia has a 5.2% fixed rate 30-year 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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  1. jim_thompson5910
    • 2 years ago
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    There 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)

  2. jim_thompson5910
    • 2 years ago
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    so if she pays a total of $691,880 (ignoring the down payment), then we can say monthly payment = (Total Cost)/(Number of Payments)

  3. jim_thompson5910
    • 2 years ago
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    tell me what you get for the monthly payment

  4. ally7343
    • 2 years ago
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    I got 1921.88

  5. jim_thompson5910
    • 2 years ago
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    same here, well I got 1,921.88888888889 and that rounds to 1,921.89 but that's close enough

  6. ally7343
    • 2 years ago
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    Okay thank you! Mind helping with a few more?(:

  7. jim_thompson5910
    • 2 years ago
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    sure

  8. jim_thompson5910
    • 2 years ago
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    what's the question

  9. ally7343
    • 2 years ago
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    Bob has a 30-year 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?

  10. jim_thompson5910
    • 2 years ago
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    There's a formula to calculate monthly payments, but it's easier to use a calculator

  11. jim_thompson5910
    • 2 years ago
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    which one do you want to use?

  12. ally7343
    • 2 years ago
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    Either.

  13. jim_thompson5910
    • 2 years ago
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    ok let's use the calculator here's a good one http://www.bankrate.com/calculators/mortgages/mortgage-calculator.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

  14. jim_thompson5910
    • 2 years ago
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    oh when i mean "hit enter" i meant "hit calculate"

  15. ally7343
    • 2 years ago
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    $447.87?

  16. jim_thompson5910
    • 2 years ago
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    i'm getting the same

  17. ally7343
    • 2 years ago
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    Okay. 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?

  18. jim_thompson5910
    • 2 years ago
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    let me look up what the 30/5 means real quick, one sec

  19. jim_thompson5910
    • 2 years ago
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    hmm 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/mortgage-loan-types/5-year-balloon-mortgage-different-from-a-5-1-arm.html

  20. jim_thompson5910
    • 2 years ago
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    again, 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

  21. jim_thompson5910
    • 2 years ago
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    remember that calculator link I sent you?

  22. ally7343
    • 2 years ago
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    yea

  23. jim_thompson5910
    • 2 years ago
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    ok 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"

  24. jim_thompson5910
    • 2 years ago
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    what 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

  25. ally7343
    • 2 years ago
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    Alright, I got that part done.

  26. jim_thompson5910
    • 2 years ago
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    if 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

  27. jim_thompson5910
    • 2 years ago
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    oh sry, i meant to say 1,121,213.41

  28. jim_thompson5910
    • 2 years ago
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    and you would round this to the nearest dollar (like they instruct) to get 1,121,213

  29. ally7343
    • 2 years ago
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    Alright thank you.

  30. jim_thompson5910
    • 2 years ago
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    np

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