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djverab [1.8K]
2 years ago
6

Darlene is getting an FHA-insured loan to purchase a house. The purchase price is $278,000, and she’s paying 3.5% down. She will

have to pay an upfront mortgage insurance premium of $4,865, which will be financed as part of the loan. What is the loan-to-value on this loan?
Business
1 answer:
omeli [17]2 years ago
4 0

Answer:

96.5%

Explanation:

Data provided in the question:

Purchase price i.e the value = $278,000

Down payment paid = 3.5%

Upfront mortgage insurance premium = $4,865

Now,

Amount of down payment = 3.5% of loan value

= 0.035 × $278,000

= $9,730

Therefore,

The loan value = value - Amount of down payment

= $278,000 -  $9,730

= $268,270

Thus,

loan-to-value on the loan = [ loan value ÷ value ] × 100%

= [ $268,270 ÷ $278,000 ] × 100%

= 96.5%

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1 year ago
The payment to entrepreneurship is called
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3 years ago
9. Problems and Applications Q9 Suppose that a borrower and a lender agree on the nominal interest rate to be paid on a loan. Th
den301095 [7]

Answer: False

Explanation:

The real interest rate is the nominal interest rate adjusted for inflation.

If the nominal interest rate was made with inflation in mind and this inflation is less than anticipated, the real rate will be higher not lower than expected.

For instance: Assume the nominal rate is 8% and the two parties assumed inflation would be 4%. Real rate would be:

= 8 - 4 = 4%

If inflation is instead 2%, real rate would be:

= 8 - 2 = 6%

Real rate would be higher than anticipated.

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2 years ago
Which of the following is an example of a Specialty store? a. Big Lots c. Macy’s b. Wal-Mart d. PetSmart
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Answer:

<u>PetSmart</u> is an example of a speciality store.

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2 years ago
lpha Moose Transporters has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at t
kirza4 [7]

Answer:

13.86%

Explanation:

Calculation to determine the flotation-adjusted (net) cost of its new common stock

Using this formula

Cost of new common stock(re) = [d1 / stock price (1-flotation cost)] +g

Let plug in the formula

Cost of new common stock(re)= [$1.36 / 33.35 (1 – 0.065)]+0.094

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Therefore the flotation-adjusted (net) cost of its new common stock will be 13.76%

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2 years ago
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