Exam 13: Loan Amortization: Mortgages

A loan of $12,000 with interest at 14% compounded annually is to be amortized by equal payments at the end of each year for six years. -What is the outstanding principal just after the fifth payment?

Ballard is considering purchasing a condo that will have monthly payments of $950 per month. Property taxes along with heating costs will total $375 per month. His monthly credit card bills total $200 per month and car payments are $700 per month. If Sally's gross monthly income is $6,000 per month, determine his Total Debt Service Ratio.

A business borrows $50,000 for expansion, and is repaying the debt by making quarterly payments of $1700 at 8.5% compounded quarterly. Calculate the balance after four years. Calculate the final payment.

The Melnyks are nearing the end of the first three-year term of a $200,000 mortgage loan with a 20-year amortization. The interest rate has been 7.7% compounded semi-annually for the initial term. How much will their monthly payments decrease if the interest rate upon renewal is 6.7% compounded semi-annually?

A $350,000 mortgage is amortized over 25 years. What is the monthly payment if interest is 5.8% compounded quarterly?

The interest rate on a $150,000 mortgage is 6.75% compounded quarterly. Calculate the monthly payment for an amortization period of 20 and 25 years.

A $33,950 loan at 10.6% compounded semi-annually is to be paid off by a series of $4,000 payments that will be made at the end of every six months. How much of the first payment will be credited towards reduction of the principal?

Gurpreet plans to purchase a condo valued at $385,000. He is considering putting in a $45,000 down payment on the property and obtaining a mortgage for the remainder. Determine the Loan to Value Ratio.

A $175,000 mortgage is amortized over 20 years. Calculate the monthly payment for 5.5% compounded quarterly and 7.75% compounded quarterly.

A $120,000 mortgage is amortized over 25 years. Interest is 7.5% compounded semi-annually for a 5-year term with monthly payments. At the end of the fifth year, the mortgage is renewed for a four-year term at a rate of 7.0% compounded semi-annually. Determine the monthly payments throughout the renewal four year term.

There are two offers on a property listed at $185,000. Mr. Smith is offering $183,000 cash. Ms. Jones's offer consists of $100,000 cash and a mortgage back to the vendor for $90,000 at a rate of 7.5% compounded semi-annually and payments of $700 per month for a three-year term. If current three-year rates are 9.5% compounded semi-annually, what is the equivalent cash value of Ms. Jones's offer?

Crystal is considering purchasing a condo that will have monthly payments of $1,950 per month. Property taxes along with heating costs will total $400 per month. Her monthly credit card bills total $75 per month and car payments are $450 per month. If Crystal's gross monthly income is $7,500 per month, determine his Total Debt Service Ratio.

The Globerman family purchased a $580,000 home 5 years ago. The mortgage was based on 25-year amortization and the term of the mortgage was for 5 years at 7.5% interest compounded monthly. At the start of year 6, the Globerman family have refinanced their mortgage at 7.3% compounded monthly, and have decided to increase their payments by 5% of the original payment amount. Determine how much faster the family will be able to pay off the mortgage by increasing payments and lowered interest rates.

A $100,000 mortgage loan at 7.2% compounded semi-annually requires monthly payments based on a 25-year amortization. Assuming that the interest rate does not change for the entire 25 years, complete the following table.

Armando purchased a $380,000 condo with a 25-year mortgage. The interest on the mortgage is 5.6% compounded monthly and he makes semi-monthly payments towards the mortgage. Determine how much total interest was paid up to the end of year 5.

A $100,000 mortgage at 7.3% compounded semi-annually with a 25-year amortization requires monthly payments. The mortgage allows the borrower to miss a payment once each year. How much will the amortization period be lengthened if the borrower misses the 12^th payment? (The interest that accrues during the 12^th month is converted to principal at the end of the 12^th month.)

Miss Jones borrowed $10,000 at 12% compounded monthly, and agreed to pay back the loan by equal monthly payments over five years. After making the first 10 payments on time, she missed the next four payments. -What total amount paid on the scheduled date for the 15^th payment will bring the loan up-to-date?

A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much will the borrower still owe after four years?

A mortgage of $300,000 is amortized over 20 years at 5.25% compounded quarterly. What is the outstanding balance after 10 years?

Five years ago, the Alexander family purchased a house for 570,000. They amortized the loan over 25 years, and paid for the mortgage through monthly payments over 5 years at a current interest rate of 5.5% compounded monthly. The mortgage is about to be refinanced, and interest rates have dropped 5.5% to 5.1% compounded monthly. Determine how much the Alexander family will save on each month's payment.