Question

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?

Answer 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)

Answer 2

so if she pays a total of $691,880 (ignoring the down payment), then we can say

monthly payment = (Total Cost)/(Number of Payments)

Answer 3

tell me what you get for the monthly payment

Answer 4

I got 1921.88

Answer 5

same here, well I got 1,921.88888888889 and that rounds to 1,921.89

but that's close enough

Answer 6

Okay thank you! Mind helping with a few more?(:

Answer 7

sure

Answer 8

what's the question

Answer 9

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?

Answer 10

There's a formula to calculate monthly payments, but it's easier to use a calculator

Answer 11

which one do you want to use?

Answer 12

Either.

Answer 13

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

Answer 14

oh when i mean "hit enter" i meant "hit calculate"

Answer 15

$447.87?

Answer 16

i'm getting the same

Answer 17

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?

Answer 18

let me look up what the 30/5 means real quick, one sec

Answer 19

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

Answer 20

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

Answer 21

remember that calculator link I sent you?

Answer 22

yea

Answer 23

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"

Answer 24

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

Answer 25

Alright, I got that part done.

Answer 26

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

Answer 27

oh sry, i meant to say 1,121,213.41

Answer 28

and you would round this to the nearest dollar (like they instruct) to get 1,121,213

Answer 29

Alright thank you.

Answer 30

np