I've been trying to answer this problem but i just cant! so if you just give me the formula or like how to answer it or the answer to it that would be the best!!!
you dont need to answer the whole problem.. just a part of it at least? its due tomorrow :/ this is my last resort!
Consider the following article:
Nearly Two years ago, Mario and Leticia Montes found a home they loved, a gray stucco bungalow with a hot tub in the backyard in a middle-class neighborhood of Orange County. The price was a major stretch at $567,000. But the couple, who had sold a home a few years earlier to move to a better area, was tired of renting. Mr. and Mrs. Montes convened a meeting with their two teenage daughters around the kitchen table to hash out the implications. "We agreed we wanted to be homeowners again," says Mr Montes, "even if it meant the end of vacations and not eating out as often." Like many people who jumped into rising housing market in recent years, they has little money for a down payment and chose a loan that would hold their monthly payemnts down for the first two years, then "reset" to a much higher level. Mr. and Mrs. Montes says their mortgage broker assured them they would be able to refinance in a couple of years to keep their payments affordable. With a Decemeber "reset" on their loan looming, however, the refinancing option now looks impossible. A friend who works as a loan officer called with some bad news this week: Similar homes in their area have been selling for $535,000 to $565,000 recently. That means the Monteses' loan balance may exceed the value of their home. (Assume a 30 year mortgage)
a)If the Montes's beginning mortgage rate was 4.25% compounded monthly, find their monthly payment.
b)How much of their mortgage would still be unpaid at the time of the loan reset? Is this higher than the average price of homes in their neighborhood?
c)What would the Montes's new monthly payment be if their interest rate climbed to 11.25% compounded monthly at the loan reset?
d)How much more will the Montes's pay each month for their loan?Hi, I have a math problem i'm having trouble with.. please help me with at least a PART of it? :/ thank you!!?
Go to a drug store and spend ten bux on a financial calculator. Texas Instruments used to make the best, but I haven't checked lately. You won't believe how easy those questions are with a calculator. Of course you have to read the book so you understand what the calculator is doing.
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