Section 5

Ricky and Lucy are buying a house for $180,000 and putting up a $20,000 down payment. They will borrow the rest of the money at 5% interest. If the amortization factor is 5.37 per $1,000 borrowed, what will be the monthly principal and interest payment?

$859.20.

A buyer places a loan on a property for $100,000 at 9.5% interest for 30 years, fully amortized. If the monthly payment is $840.87, what is the balance of the loan after 3 payments have been made?

$99,851.20

G obtains an 8% loan for $2,400. The loan is to be repaid in four payments of $600 each, plus interest at six-month intervals. How much interest will G pay during the term of the loan?

$240

A property sells for $150,000. The buyer will make a 20% down payment and pay the lender three points. How much will the buyer pay for points?

$3,600

A property sold for $40,625 with an 80% loan at 9% interest. If the monthly payment is $325, what is the remaining balance on the loan at the end of two months?

$32,336.89

Use the amortization table to solve this problem. We recommend writing this one out manually to get a better visual. A new row begins after each vertical bar (|), and a comma separates each cell. Per $1,000 of loan amount: |Rate, 15 Years, 20 Years, 25 Years, 30 Years |9%, 10.15, 9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41 |10%, 10.75, 9.66, 9.09, 8.78|. A couple can qualify for a monthly loan payment of $1,200 (P&I). In addition to closing costs, they will make a $10,000 down payment. If lenders are offering 20-year loans at 9.5%, what is the maximum amount that they can spend on a house? (To the nearest $100)

$138,600

Use the amortization table to solve this problem. We recommend writing this one out manually to get a better visual. A new row begins after each vertical bar (|), and a comma separates each cell. Per $1,000 of loan amount: |Rate, 15 Years, 20 Years, 25 Years, 30 Years |9%, 10.15, 9.00, 8.40, 8.05 |9.5%, 10.45, 9.33, 8.74, 8.41 |10%, 10.75, 9.66, 9.09, 8.78|. Assume you borrow $110,000 at 9% for 25 years. How much interest will be paid if the loan is paid off at the scheduled maturity date?

$167,200

On a loan balance of $15,625 the next monthly payment will include $112.90 to be applied to interest. What is the interest rate of the loan?

8.67%