anonymous
  • anonymous
can someone please check my work on mortgage?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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schrodinger
  • schrodinger
I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!
anonymous
  • anonymous
Okay.
anonymous
  • anonymous
Link??
anonymous
  • anonymous
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anonymous
  • anonymous
@jim_thompson5910
anonymous
  • anonymous
@karatechopper @mathmate @misssunshinexxoxo
jim_thompson5910
  • jim_thompson5910
first two look good so far
jim_thompson5910
  • jim_thompson5910
question 3 is incorrect
anonymous
  • anonymous
how would i solve that one
jim_thompson5910
  • jim_thompson5910
what is 1.5% of that mortgage?
anonymous
  • anonymous
multiply?
jim_thompson5910
  • jim_thompson5910
yeah 0.015 with the mortgage amount
jim_thompson5910
  • jim_thompson5910
1.5% =0.015
anonymous
  • anonymous
of what?
jim_thompson5910
  • jim_thompson5910
the $197,000 mortgage
anonymous
  • anonymous
which is 295000
anonymous
  • anonymous
2955
jim_thompson5910
  • jim_thompson5910
add that onto 2000
jim_thompson5910
  • jim_thompson5910
since it says "A mortgage broker charges $2000 plus 1.5% of the mortgage amount"
anonymous
  • anonymous
4955
anonymous
  • anonymous
right @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
yes
anonymous
  • anonymous
anything else that was wrong @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
there are some here you didn't answer
anonymous
  • anonymous
which ones
jim_thompson5910
  • jim_thompson5910
like "A mortgage is in the amount of $600,000. The origination fee is 0.5%, the intangible tax is 0.2%, and there are 1.5 discount points"
jim_thompson5910
  • jim_thompson5910
and "Sherri attempts to determine the total cost of a $500,000 ARM which starts at 6% by predicting the monthly payments. Her predictions are shown in the table"
anonymous
  • anonymous
is that it or is there more
jim_thompson5910
  • jim_thompson5910
there are more basically where you didn't highlight the answer in yellow
jim_thompson5910
  • jim_thompson5910
I'll be right back
anonymous
  • anonymous
yeah that is my answer the ones i highlighted @jim_thompson5910
anonymous
  • anonymous
are you still checking it @jim_thompson5910
anonymous
  • anonymous
yes no maybe? @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
yes I'm still checking
jim_thompson5910
  • jim_thompson5910
the one with "What is the amount of the balloon payment rounded to the nearest dollar?" is incorrect where you picked $192,063
anonymous
  • anonymous
ok how can i fix that
jim_thompson5910
  • jim_thompson5910
go here http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
jim_thompson5910
  • jim_thompson5910
type in the given mortgage amount (200,000) interest rate (7%) time (15 years) then scroll to June 2019
jim_thompson5910
  • jim_thompson5910
look in the last column
anonymous
  • anonymous
165,163.53?
jim_thompson5910
  • jim_thompson5910
which rounds to 165,164
anonymous
  • anonymous
anything else that is wrong?
anonymous
  • anonymous
@jim_thompson5910
jim_thompson5910
  • jim_thompson5910
"Julie is buying a house for $225,000. She obtains a mortgage in the amount of $156,000 at a 4.5% fixed rate. The bank offers a 4.25% interest rate if Julie pays 2.25 points. What is the cost of points for this mortgage rounded to the nearest dollar?" that one is wrong as well
jim_thompson5910
  • jim_thompson5910
take 1% of the mortgage, then multiply by 2.25
anonymous
  • anonymous
1% of 156,000
jim_thompson5910
  • jim_thompson5910
yeah
anonymous
  • anonymous
3510
anonymous
  • anonymous
any more?
anonymous
  • anonymous
what about the hank and caesar one?
jim_thompson5910
  • jim_thompson5910
I'm looking at the ones you answered. I'm onto the last one
anonymous
  • anonymous
i answered both hank and caesar?
anonymous
  • anonymous
?????
jim_thompson5910
  • jim_thompson5910
you didn't mark the answer
jim_thompson5910
  • jim_thompson5910
some of the questions weren't marked
anonymous
  • anonymous
can you tell me the ones i didn't mark @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
the question "What is the break-even point for the loans?" has the correct answer that you marked (10 years)
jim_thompson5910
  • jim_thompson5910
the other stuff is unmarked, so I'll let you do that part.
anonymous
  • anonymous
which questions tell me the beginning of the question
jim_thompson5910
  • jim_thompson5910
it's in the doc file. There are a lot that weren't marked
anonymous
  • anonymous
what do you mean without the highlighter?
jim_thompson5910
  • jim_thompson5910
yeah
jim_thompson5910
  • jim_thompson5910
there are no yellow highlights
anonymous
  • anonymous
let me highlight them then
anonymous
  • anonymous
1 Attachment
anonymous
  • anonymous
i fixed it @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
ok let me check
jim_thompson5910
  • jim_thompson5910
this one is incorrect `A mortgage is in the amount of $600,000. The origination fee is 0.5%, the intangible tax is 0.2%, and there are 1.5 discount points. ` `Which of the following is the total cost of the origination fee, the intangible tax, and the discount points?`
anonymous
  • anonymous
ok how can i fix it
jim_thompson5910
  • jim_thompson5910
take 0.5% of the mortgage to get x take 0.2% of the mortgage to get y take 1% of the mortgage, multiply it by 1.5 to get z add x+y+z
anonymous
  • anonymous
i got 10200
anonymous
  • anonymous
wait wait
anonymous
  • anonymous
its 13200
anonymous
  • anonymous
right?
jim_thompson5910
  • jim_thompson5910
yep
jim_thompson5910
  • jim_thompson5910
`Sherri attempts to determine the total cost of a $500,000 ARM which starts at 6% by predicting the monthly payments. Her predictions are shown in the table. ` is incorrect
jim_thompson5910
  • jim_thompson5910
I'm not sure how you got that
anonymous
  • anonymous
how would i fix it
jim_thompson5910
  • jim_thompson5910
$2997.75 per month for 5 years $2858.27 per month for 15 years $3093.85 per month for 10 years add up all that
anonymous
  • anonymous
multiply each one right?
jim_thompson5910
  • jim_thompson5910
yeah and keep in mind 12 months = 1 year
anonymous
  • anonymous
so multiply the years by 12?
anonymous
  • anonymous
and then add the price
anonymous
  • anonymous
@jim_thompson5910
jim_thompson5910
  • jim_thompson5910
yes to convert to months
anonymous
  • anonymous
so then for example i multiply 60 * 2997.75 or add the two
jim_thompson5910
  • jim_thompson5910
yeah do that for the three lines, then add the results
anonymous
  • anonymous
so i multiply them
jim_thompson5910
  • jim_thompson5910
then add, yes
anonymous
  • anonymous
i got it. anything else that is wrong?
jim_thompson5910
  • jim_thompson5910
what answer did you get
anonymous
  • anonymous
1065615.6
jim_thompson5910
  • jim_thompson5910
good
jim_thompson5910
  • jim_thompson5910
`Jackie obtains a 30-year 4/2 ARM at 5% with a 4/7 cap structure in the amount of $313,500. What is the monthly payment during the initial period?` is wrong
jim_thompson5910
  • jim_thompson5910
Use the formula \[\Large M = \frac{L*i}{1-(1+i)^{-n}}\] L = 313,500 i = 0.05/12 = 0.00416666666667 n = 30*12 = 360
anonymous
  • anonymous
-n?
jim_thompson5910
  • jim_thompson5910
yeah the exponent is -n
anonymous
  • anonymous
i got 1682.94
anonymous
  • anonymous
right @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
i got the same
anonymous
  • anonymous
anything else thats wrong?
anonymous
  • anonymous
@jim_thompson5910
jim_thompson5910
  • jim_thompson5910
still checking
jim_thompson5910
  • jim_thompson5910
why did you pick $192,063 again? we already went over that one
jim_thompson5910
  • jim_thompson5910
the one with the balloon mortgage
anonymous
  • anonymous
yeah we did
jim_thompson5910
  • jim_thompson5910
so be sure to fix that as well
jim_thompson5910
  • jim_thompson5910
`Mabel has a 15 year adjustable rate mortgage with a fixed rate for the first 4 years. In the 5th year, the interest rate rises to 5.8%. The remaining balance at the end of the 4th years is $231,975.40. What is the monthly payment in the 5th year?` Use \[\Large M = \frac{L*i}{1-(1+i)^{-n}}\] L = 231,975.40 i = 0.058/12 = 0.004833 n = 11*12 = 132
anonymous
  • anonymous
is it 2381.2632443602311616
jim_thompson5910
  • jim_thompson5910
more like 2381.310317
jim_thompson5910
  • jim_thompson5910
but close enough
anonymous
  • anonymous
what about the question with hank and caesar
jim_thompson5910
  • jim_thompson5910
the one with hank, where you picked 570,702, is correct
anonymous
  • anonymous
ceasar?
anonymous
  • anonymous
caesar?
anonymous
  • anonymous
that one i know is wrong
jim_thompson5910
  • jim_thompson5910
not sure yet
jim_thompson5910
  • jim_thompson5910
they pulled a mean trick on that one
jim_thompson5910
  • jim_thompson5910
instead of 0.5% the origination fee is 1%
anonymous
  • anonymous
so what do i do
jim_thompson5910
  • jim_thompson5910
but you got the right answer (by randomly guessing? lol) 1.75*0.01*110500+2.0*0.01*110500 = 4,143.75
anonymous
  • anonymous
lol yay
anonymous
  • anonymous
check bradley
anonymous
  • anonymous
and the last three of the questions
jim_thompson5910
  • jim_thompson5910
the Bradley one is correct
anonymous
  • anonymous
the mortgage one?
anonymous
  • anonymous
???
jim_thompson5910
  • jim_thompson5910
see attached
anonymous
  • anonymous
i will solve it check the next 2
anonymous
  • anonymous
i got 3,455.20
anonymous
  • anonymous
what about the last 2
anonymous
  • anonymous
@jim_thompson5910
jim_thompson5910
  • jim_thompson5910
3,455.20 is correct for that one
jim_thompson5910
  • jim_thompson5910
did you guess on the last 2 as well?
jim_thompson5910
  • jim_thompson5910
they are correct
anonymous
  • anonymous
thank you @jim_thompson5910
anonymous
  • anonymous
can you answer one last question for me?
anonymous
  • anonymous
Why it is necessary to prorate expenses? Explain in complete sentences. @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
tell me what you think
anonymous
  • anonymous
i am not sure @jim_thompson5910
jim_thompson5910
  • jim_thompson5910
what does prorate mean? any idea?
anonymous
  • anonymous
to disribute money evenly
jim_thompson5910
  • jim_thompson5910
so what do they mean when they say "prorate expenses" ?
jim_thompson5910
  • jim_thompson5910
you're on the right track
anonymous
  • anonymous
to distibute such expenses evenly
jim_thompson5910
  • jim_thompson5910
so why is it necessary to do that?
anonymous
  • anonymous
so that the expenses are not being recieved unevenly which could cause discrepsy and issues in a possible bank account
anonymous
  • anonymous
???
jim_thompson5910
  • jim_thompson5910
Let's say that it costs $100 in property tax for a certain month (say June) If person A is selling the house to person B, and the house is fully sold on June 10th, is it fair for person A to pay all of the $100 tax for the full month of June?
anonymous
  • anonymous
no bc he he already sold the property
jim_thompson5910
  • jim_thompson5910
so it's more fair to have person A pay 10/30 = 1/3 of the $100 tax bill and have person B pay 20/30 = 2/3 of the bill
jim_thompson5910
  • jim_thompson5910
that's one example of prorating expenses
anonymous
  • anonymous
so what does this imply like by definition
jim_thompson5910
  • jim_thompson5910
mortgage insurance is another item that's prorated
jim_thompson5910
  • jim_thompson5910
like you said: to split up the costs fairly
jim_thompson5910
  • jim_thompson5910
and the split is based on how long the person has possession of the property
anonymous
  • anonymous
oh ok
jim_thompson5910
  • jim_thompson5910
the split would be 50/50 if person A had the property for the first 15 days, and person B had it for the rest of the 15 days

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