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ally7343
Group Title
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?
 one year ago
 one year ago
ally7343 Group Title
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?
 one year ago
 one year ago

This Question is Closed

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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)
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
so if she pays a total of $691,880 (ignoring the down payment), then we can say monthly payment = (Total Cost)/(Number of Payments)
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
tell me what you get for the monthly payment
 one year ago

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
I got 1921.88
 one year ago

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

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
Okay thank you! Mind helping with a few more?(:
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
sure
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
what's the question
 one year ago

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
Bob 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?
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
There's a formula to calculate monthly payments, but it's easier to use a calculator
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
which one do you want to use?
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
ok 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
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
oh when i mean "hit enter" i meant "hit calculate"
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
i'm getting the same
 one year ago

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
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?
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
let me look up what the 30/5 means real quick, one sec
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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/mortgageloantypes/5yearballoonmortgagedifferentfroma51arm.html
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
remember that calculator link I sent you?
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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"
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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
 one year ago

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
Alright, I got that part done.
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
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
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
oh sry, i meant to say 1,121,213.41
 one year ago

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

ally7343 Group TitleBest ResponseYou've already chosen the best response.1
Alright thank you.
 one year ago

jim_thompson5910 Group TitleBest ResponseYou've already chosen the best response.1
np
 one year ago
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