Don't use plagiarized sources. Get Your Custom Essay on
Just from \$13/Page

1- An interest only ARM is made for \$180,000 for 30 years. The start rate is 7 percent, with a floor on interest rate of 6%, and the borrower will (1) make monthly interest only payments for 3 years. Payments thereafter must be sufficient to fully amortize the loan at maturity. (2/. )

a. What will the payments be for the first 3 years?

b. Assume that at the end of year 3, the reset rate is 5 percent. What will payments be?

2- A partially amortizing mortgage is made for \$60,000 for a term of 10 years. The borrower and lender agree that a balance of \$20,000 will remain and be repaid as a lump sum at that time. If the interest rate is 7 percent, what must monthly payments be over the 10-year period? (2/. )

3- A price level adjusted mortgage (PLAM) is made with the following terms: Amount \$200,000, Initial interest rate 4 percent, Term 30 years, Payments to be reset at the beginning of each year. Assuming inflation is expected to increase at the rate of 6 percent at the end of year five. (4/. )
a. Compute the payments at the beginning of year 3(BOY3).

b. What is the loan balance at the end of the fifth year?

c. What is the yield to the lender on such a mortgage?

4- An investor is considering the acquisition of a “distressed property’’ which is on Northlake Bank’s REO list. The property is available for \$200,000 and the investor estimates that the property will require the following total expenditures during the next year:

Inspection \$ 500
Title search  1,000

Renovation 13,000

Landscaping 800

Insurance 1,800

Property taxes 6,000

Selling expenses  8,000

a- The investor is wondering what such a property must sell for after one year in order to earn a 20 percent return?  (2/. )

b- Assume you are planning to own a residential property, which approach would you choose to make the best price estimate, and why? (2/. )

Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
\$0.00

How it works?

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.