RES 431 Lecture 18: 18_RES 431 M001 Petrova 4-17-17
10 May 2017
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Res 431 residential mortgage calculations exercises: suppose a homeowner has an existing mortgage loan with these terms: remaining balance of ,000, interest rate of 8%, and remaining term of 10 years (monthly payments). This loan can be replaced by a loan at an interest rate of 6 percent, at a cost of. What difference would it make if the homeowner expects to be in the home for only five more years: assume an elderly couple owns a ,000 home that is free and clear of mortgage debt. A reverse annuity mortgage (ram) lender has agreed to a ,000 ram. The loan term is 12 years, the contract rate is 9. 25%, and payments will be made at the end of each month: what is the monthly payment on this ram, fill in the following partial loan amortization table: What portion represents interest: five years ago you borrowed ,000 to finance the purchase of a ,000 house.
