A developer would most likely obtain which of the following types of mortgage on a new subdivision?
1 answer:
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Answer:
$3,173.63
Explanation:
For computing the price of the bond we need to apply the present value i.e to be shown in the attachment
Given that,
Future value = $3,000
Rate of interest = 4.8% ÷ 2 = 2.4%
NPER = 25 years × 2 = 50 years
PMT = $3,000 × 5.2% ÷ 2 = $78
The formula is shown below:
= -PV(Rate;NPER;PMT;FV;type)
So, after applying the above formula, the price of the bond is $3,713.63
Answer:
prime mortgage insurance (PMI) is an insurance that mortgage lenders require when borrowers make a down payment of less than 20% of the purchase price of the house.
We are not given any table, so I looked in the internet to find one that can be used as an example:
outstanding principal = $142,000 - 17% = $117,860
- mortgage term equal or less than 15 years
- base loan amount is less than $625,000
- loan to value ratio = 1 - down payment = 83%, which means it is ≤ 90%
- bps = 45
total yearly premium = principal x bps = $117,860 x 0.0045 = $530.47
monthly PMI payment = $530.47 / 12 months = $44.20
