1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ivanzaharov [21]
1 year ago
10

suppose you are thinking about purchasing a small office building for $1,500,000. the 30 year fixed rate mortgage that you have

arranged covers 80% of the purchase price and has an interest rate of 8%. assume you were to default and go into foreclosure in year 10 of this loan. if the lender was able to sell this property for $700,000, how much does the lender stand to lose in the absence of pmi?
Business
1 answer:
Mnenie [13.5K]1 year ago
6 0

$352,696 lender stand to lose in the absence of pmi. A borrower may be required to PMI as a condition of obtaining a conventional mortgage loan.

<h3>What is Private Mortgage Insurance (PMI) ?</h3>

Private mortgage insurance (PMI) is a type of insurance that a borrower might be required to buy as a condition of a conventional mortgage loan. When a buyer puts down less than 20% of the home's price, the majority of lenders demand PMI.

In contrast to most insurance types, this one safeguards the lender's investment in the house, not the policyholder. However, PMI enables some people to purchase a home more quickly. PMI makes it possible for people to get financing if they decide to put down between 5% and 19.99% of the home's cost.

It does, however, incur additional monthly expenses. Until they have built up enough equity in the property that the lender no longer views them as high-risk, borrowers must continue to pay their PMI.

Formula for calculating PMI :Divide the loan amount by the property value. Then multiply by 100 to get the percentage. If the result is 80% or lower, your PMI is 0%, which means you don't have to pay PMI.

To learn more about mortgage refer :

brainly.com/question/24040386

#SPJ4

You might be interested in
Eliminating _______ pushes idea creation and decision-making out of headquarters and into the field. none of these pay bonuses p
natima [27]

The correct answer is layers of management. Layers of management is defined as a centralized, bureaucratic organization structure by which it is composed of three levels of management that are; top-level, middle level, and first level managers that are less top level managers.

3 0
3 years ago
Why is Eagle Bank's 1-year CD the only account
Rudik [331]

Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

<h3>What is a CD?</h3>

A certificate of deposit (CD) is a special bank savings account that earns interest on a lump-sum deposit for a predetermined period of time without withdrawals until the due period.

CDs are among the lowest-risk investments as they do not lose value if a bank fails based on the Federal Deposit Insurance Corporation (FDIC) insured guarantee.

Thus, Eagle Bank's 1-year CD became the only account guaranteed to return $22 in interest on a $1,000 deposit because a typical CD earns about 1.5% or less instead of 2.2%.

Learn more about Certificate of Deposit at brainly.com/question/1874937

#SPJ1

7 0
2 years ago
Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's
forsale [732]

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.

6 0
3 years ago
Juan buys gas at the gas station. The gas station submits funds for road maintenance. What type of tax is this? (5 points)
prisoha [69]

Answer:

Indirect taxes

Explanation:

Indirect taxes are the taxes levied on transactions as opposed to direct taxes that are imposed on incomes. An indirect tax is added to the prices of goods and services and collected by the seller or retailer. The retailer acts as the tax intermediary and submits the taxes collected to the government.

Examples of Indirect taxes include excise duty tax, value-added tax, and sales tax.  Gas attracts sales tax and road maintenance tax. These taxes increase the price of gas, making them indirect taxes.

6 0
2 years ago
People pursue _____________ projects in the market and ____________ projects in government.
Bingel [31]
A. Their own, their own
Is the answer
4 0
3 years ago
Other questions:
  • What is an indicator of increased economic growth in a nation?
    15·1 answer
  • If you were to take over as inventory control manager at wheeled coach, what additional policies and techniques would you initia
    13·1 answer
  • Barb works in a local factory. She receives 92 cents for each of the first 100 units she produces and $1.01 for each unit over 1
    5·1 answer
  • Ski resorts are interested in the mean age that children take their first ski and snowboard lessons. They need this information
    11·1 answer
  • Steve Jobs was a strong, charismatic leader who co-founded Apple and is credited with much of the success of the company. Some b
    11·1 answer
  • “Long-term loans are riskier for lenders because they cannot accurately predict long-term economic trends.” What economic trends
    6·1 answer
  • Taxpayer L has income of $55,000 from Norway, which imposes a 40 percent income tax, and income of $45,000 from France, which im
    9·1 answer
  • BEFORE GETTING OUT OF YOUR CAR, AFTER PARKING AT A TWO-WAY STREET CURB, YOU SHOULD:
    10·2 answers
  • What are the financial resources of netflix​
    6·1 answer
  • What percentage of each dollar of sales affected net income given Sales of $120,000; Cost of Goods Sold of $70,000; Operating Ex
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!