Mortgage Calculations

Posted: August 26th, 2021

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Mortgage Calculations

Question 22

Given the following details;

Valuation amount= $125,000.000

Down Payment= 15% x 125,000= 18,750

Annual interest rate= 5.9%

Number of years= 25 years

Mortgage amount= 148,750

The principal amount can be obtained as follows;

Where: P= principal amount

            r= interest rate

            n= compounding periods

            t= term period

Therefore;

Question 24

Given the following details;

Valuation amount= $250,000.00

Down payment= 40% x 250,000= 100,000

Annual interest rate= 5%

Number of years= 30 years

Mortgage amount= 150,000

The monthly payment can be obtained using the formula below;

Where: P= principal amount

            r= interest rate

            n= compounding periods

            t= term period

Therefore;

Question 25

Given the following;

Valuation amount= $165,000

Down payment= 17% x 165000= 28,050

Annual interest rate= 7%

Number of years= 15

Closing cost= 3300 Down payment is 28,050

Mortgage amount= 140,250

Using the formula below, the monthly payment can be obtained as follow;

Where: P= principal amount

            r= interest rate

            n= compounding periods

            t= term period

Question 26

Given the following;

Valuation amount= $410,000

Down payment= 17% x 410,000= 340,300

Annual interest rate= 7.72%

Number of years= 15

Where: P= principal amount

            r= interest rate

            n= compounding periods

            t= term period

Monthly payment is the therefore;

Question 27

Valuation amount= $469,500

Down payment= 9% x 469,500= 42255

Annual interest rate= 30%

Number of years= 30

Mortgage amount= $ 427,245

Monthly payment = $2037.96

3-months amortization schedule

Table 1: 3 Months Amortization Schedule

Year	Loan balance	Interest	Payment on Principal
	469,500
1	469,500-42255= 427245	2,037.96	427,245-2,037.96= 425,207.04
2	425,207.04	2,037.96	425,207.04-2,037.96=423,168.08
3	423,168.08	2,037.96	423,168.08-2,037.96=421,131.12