1. Stefani is purchasing a house and finances $410,350 of the purchase price. The mortgage is a 30-year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years?
Answer: $217,870.06

Question

1. Stefani is purchasing a house and finances $410,350 of the purchase price. The mortgage is a 30-year 7/3 ARM at 6.5% with a 4/13 cap structure. What will the remaining balance be after the first seven years?
Answer: $217,870.06

anonymous · Answer

2. Maggie is financing $219,400 to purchase a home. How much money will she save over the life of a 15-year, fixed rate loan by buying 2 points with a rate of 5.83 instead of not buying points with the rate of 6.28%? Round to the nearest dollar.
Answer: $9,620

anonymous · Answer

Can someone check these for me

mathmate · Answer

@xstreetprowl
1.
It would be surprising to see that in a 30 year mortgage, more than half is paid after 7 years.  You may not have used the right formula.
What was the yearly payment?
If 
A=amount of mortgage (410350)
P=monthly payment
R=1+annual rate (1.065)
n=number of years (periods)
then
using
$\Large AR^n=\frac{P(R^n-1)}{R-1}$
from which you can solve for the payment P

mathmate · Answer

n=30 (years) to solve for P (yearly payment)

The left-hand side shows what is owing, and the right hand side what has been paid.  
They are equal at n=30 (paid off).
At n<30, say 7 years, the difference (left - right) is the balance owing.