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PITTSBURGH (AP) -- Given the economic downturn, even the most romantic might balk at the $86,609 price tag for the items in the carol, "The Twelve Days of Christmas." That's this year's cost, according to the annual "Christmas Price Index" compiled ...
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Partridge, pear tree, etc.: $86,609 - CNN Money
Share COULD you give me a short explanation of the term APR, especially when it comes to a mortgage? Could you explain what is included and what is left out when calculating the APR? The term APR stands for Annual Percentage Rate and is the true ...
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All you need to know about ins and outs of APR - Independent
SAN FRANCISCO, Nov 28, 2008 (BUSINESS WIRE) -- The Federal Home Loan Bank of San Francisco announced November 28, 2008, that the 11th District Monthly Weighted Average Cost of Funds Index ("COFI") for October 2008 is 3.125%. The index for September ...
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Federal Home Loan Bank of San Francisco Releases October 2008 Cost of ... - Marketwatch
Dec. 2 (Bloomberg) -- Deutsche Bank AG , Germany's biggest bank, sued three Highland Capital Management LP funds for more than $70 million over missed margin calls on commercial real- estate-backed securities. Deutsche filed the lawsuit in London ...
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Deutsche Bank, Total, Lone Star, Porsche, Shell in Court News - Bloomberg
Go Banking, a division of Nedbank, will scrap certain bank fees and simplify others this month, Toby Wooldridge, the head of Go Banking, says. A leading home loans company will be launching a capped interest rate facility for your home loan, but the ...
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Go Banking to scrap or reduce some fees - Personal Finance
Stocks got off to a positive start on Tuesday after the Federal Reserve unveiled a new facility aimed at boosting consumer credit and the market for mortgage-backed securities. Just after the opening bell, the Dow Jones Industrial Average was up 102 ...
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Register for FREE - Wall Street Journal
s a commercial mortgage broker, Randy Rienas sees first-hand the frustration of South Florida commercial property owners who need to refinance loans in the troubled lending market. Like some of his clients, he has placed much of his hope in what he ...
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Credit Crisis - Daily Business Review
U.S. stock-futures activity suggested the market would get off to a positive start on Tuesday after the Federal Reserve unveiled a new facility aimed at boosting consumer credit and the market for mortgage-backed securities. About 45 minutes before ...
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U.S. Futures Point to Lower Open - Wall Street Journal
Individuals and businesses who can't pay their bills anymore and can't sell off assets to pay their debts typically seek protection from creditors in bankruptcy court. The court can give them a fresh start by releasing them from personal liability ...
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Washington bankruptcy filings rise 40% - Seattle Times
Greg Fischer was already fed up with Bank of America for doubling his credit card’s interest rate to 28.99 percent — the price for being a couple of weeks late with a payment in April. What sent him over the top, he said, was the bank’s ...
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Calculating Mortgage Loan Questions and Answers
Open Question: Questiona on annuity,please solve it, its urgent, if u r gud at it do ans it as soon as possible.?
Question 1
(a) Ten years ago, to supplement their planned retirement, a couple purchased a 25 year flexible savings plan for a target sum of £75,000, which was projected to grow at an annual equivalent rate (AER) of 8%. The insurance company, having reviewed their plan (as they do normally every 10 years), now inform the couple that they will have to increase their monthly premium as the rate of return has turned out to be lower than expected, or face the prospect of receiving a lump sum well below the target.
(i) Calculate the revised monthly premium for the next 15 years in order to meet the target sum of £75,000, based on a projected AER of 6%. (25%)
(ii) What would be the shortfall in the target sum if the couple continued paying their monthly premium as before, but the plan grows at 6% AER for the first 10 years, and then at 5% AER for the next 15 years? (25%)
(b) A householder takes out a mortgage of £75,000 to be repaid over 25 years at an assumed Annual Percentage Rate (APR) of 6.8 %. What would be the reduction in his monthly repayment if £10,000 of the capital were repaid at the end of 10 years, with a part repayment penalty charge of £199 added to the outstanding balance? (30%)
(c) A student loan company will lend you £5,000 now, repayable in 10 years with interest but the repayments will only start after 3 years when you graduate. What will be the end of year annual repayment for the remaining 7 years if the APR on the loan is 3.6%? (20%)
NB: It is better to perform your initial calculations to 6dp to avoid rounding off errors.
Question 2
(a) Using the present value of a fixed term bond, explain the relationship between the price, the par value and the rate of return on this bond. How do you distinguish between a bond that sells at a premium and a bond that sells at a discount? (20%)
(b) A £100 par value bond has a coupon rate of 8.25 per cent, payable semi-annually on 30 June and 31 December. The bond matures on 31 December 2010. Find the quoted price and the market price of this bond on 16 November 2006, given that the yield to maturity was 8 per cent. (20%)
(c) An investor has a portfolio of three assets. The expected returns, expected standard deviations and the correlation matrix of returns are:
Asset Expected Expected Correlation matrix
Return Stand dev A B C
A 2% 10% A 1.0 0.3 0.4
B 3% 12% B 1.0 0.2
C 4% 14% C 1.0
(i) Calculate the portfolio expected return and standard deviation if each asset constitutes one third of the portfolio. (15%)
(ii) Suggest weightings for the assets that would produce a portfolio with lower risk. Explain what risk is and why it is reduced. (15%)
(iii) Trace out the efficient segment for the above data, explaining how this is obtained. What is the expected return on the least risk portfolio? (30%)
Pls solve the question with steps and formuleas, even you know one part plz do solve it.
moreVoting Question: How do i calculate PMI ?
Mortgage is $100k and I am putting down 3% - it is a fixed loan.
moreVoting Question: I have a problem with my mortgage company and loan. How do I sue them?
From the beginning,my loan contract was handled negligently. My loan documents were re-drawn 3 different times, during the final time my Property taxes were mis-calculated, having my mortgage payment one year later to increase by $900.00. During the remodification process someone mis-reversed(cancelled) the application. I gave $10,000 to participate into the plan. the company applied the money towards my past due amount mailing a $800.00 dollar check for their mistake. Then October 16, 2008 the company pre-qualified me for the government program, and every since the mortgage company has requested the same financial information repeatedly not moving forward with my approval,putting my home into foreclosure. I have contacted the Governor, Senators, Federal Reserve, Consumer Assistant Group, Office of Comptroller, and other offices on behave of this matter. Please respond!
When I speak with someone at my mortgage company they tell me over and over again there's nothing more needed for the account, for the approval of the program.
It's the Federal Fair Debt Collection Practices Act set in place to protect consumers like me, and violation laws set into place. Remember these are professional Corporations. Certified by Federal agency;s and the Better Business Buearu's to conduct business funded to represent the Federal government practice acts,.
Legal advise only.
moreVoting Question: Please help to correct my java code?
I have been correcting the arrays, and still need help with how I am putting this together. I have called out the interest rates, years, and need to printout all three mortgage payments for only one month. Any suggestions?
import java.text.DecimalFormat;
//
public class MortgagePayment
{
public void calc(double interest, double principle, int monthlypayments)
{
//Declare and construct the variables
DecimalFormat decimalPlaces = new DecimalFormat(".00");
double monthlypayments, principle, interest, interestAmount, payment;
int amount, i, paymentsPerPage, lengthOfPause;
// Variable Declaration
int principal[] = {200000, 200000, 200000};// Principal for each calculation
double interestRate[] = {5.35, 5.50, 5.75};// Interest Rate for each interest rate
int totalYears[] = {7, 15, 30};// Length in years for each loan
double monthlyInterest[] = {0, 0, 0};// Monthly Interest
int totalMonths[] = {0, 0, 0};// Number of Months
double monthlyPayment[] = {0, 0, 0};// Monthly Payment
// Calculations Loop
for (int i = 0; i < 3; i++){
monthlyInterest[i] = interestRate[i] / (12 * 100);
totalMonths[i] = totalYears[i] * 12;
monthlyPayment[i] = principal[i] * (monthlyInterest[i] /
(1 - (Math.pow((1 + monthlyInterest[i]),(-totalMonths[i])))));
}
//Output to screen
System.out.println("Principle = $"+decimalPlaces.format(principle)); //The loan amount
System.out.println("Interest Rate ="+interest*100 +"%"); //The interest rate
System.out.print("Payment per Month = $"); //The monthly payment amount
System.out.println(decimalPlaces.format(payment));
System.out.println("********************");
System.out.println("********************");
for(i = 1; i <= 1; i++)
{
System.out.println("Payment " + i + ":");
System.out.println("----------");
System.out.println("Payment Amount: $ " + decimalPlaces.format(payment));
interestAmount = ((interest / 12) * principle);
System.out.println("Interest Amount: $ " + decimalPlaces.format(interestAmount));
// You also have to calculate interest and add that back in.
principle = (principle - payment) + interestAmount;
System.out.println("Loan Balance: $ " + decimalPlaces.format(principle));
System.out.println("----------");
System.out.println("");
if(((i - 1) % paymentsPerPage) == 0)
{
try{Thread.sleep(lengthOfPause * 1000);} //This is a pause function.
catch(InterruptedException ie){}
}
}
}
}
moreVoting Question: Java assistance please...?
I have taken the advisce of my learned fellow Java
experts, and tried to add the arrays of two more years at new interest rates. I can get the first amount printout
at 30 years, but cannot get the remainder of 15 @5.5% and 7 years @ 5.35%. Now that I have the decimal places knocked, I cannot get the other two
rates and years to compile. What do I need to do next?
//Here is the basc code
import java.text.DecimalFormat;
//
public class MortgagePayment
{
public static void main (String[] args)
{
//Declare and construct variables
DecimalFormat decimalPlaces = new DecimalFormat(".00");
double monthlypayments, principle,interest,interest2,interest3,
interestAmount, payment;
int amount, i, paymentsPerPage, lengthOfPause;
/* Below are the values used in the formula for calculating the monthly mortgage payment amount */
interest = 0.0575; //Interest rate #1
principle = 200000; //Amount borrowed
monthlypayments = 360; //Number of monthly payments #1
interest2 = 0.0500;//Interest Rate #2
principle = 2000000;
monthlypayments = 180;//Number of monthly payments #2
interest3 = 0.0535;//Number of monthly payments #3
principle = 200000;
monthlypayments = 84;//Number of monthly payments #3
//This is the formula used to calculate the monthly payment
payment = principle * ( (interest / 12.0) / (1 - Math.pow( (1 + (interest / 12.0)),-monthlypayments) ));
//Output to screen
System.out.println("Principle = $"+decimalPlaces.format(principle)); //The loan amount
System.out.println("Interest Rate ="+interest*100 +"%"); //The interest rate
System.out.print("Payment per Month = $"); //The monthly payment amount
System.out.println(decimalPlaces.format(payment));
System.out.println("********************");
System.out.println("********************");
lengthOfPause = 5; //The amount of time (in seconds) to pause the page
paymentsPerPage = 3; //The number of payments to view per page
i = 1;
for(i = 1; i <= 1; i++)
{
System.out.println("Payment " + i + ":");
System.out.println("----------");
System.out.println("Payment Amount: $ " + decimalPlaces.format(payment));
interestAmount = ((interest / 12) * principle);
System.out.println("Interest Amount: $ " + decimalPlaces.format(interestAmount));
// You also have to calculate interest and add that back in.
principle = (principle - payment) + interestAmount;
System.out.println("Loan Balance: $ " + decimalPlaces.format(principle));
System.out.println("----------");
System.out.println("");
if(((i - 1) % paymentsPerPage) == 0)
{
try{Thread.sleep(lengthOfPause * 1000);} //This is a pause function.
catch(InterruptedException ie){}
}
}
}
}
OK...I tried to do what was suggested, and end up with more errors than when I started.
I do not understand WHERE to put these things.. I tried the formula location, and still cannot get anything
but the errors increasing. Does anybody know where the suggestion is supposed
to be located in the code? How does it fit?
I tried this combination with my program and I still have about 4 errors..
Any ideas?
import java.text.DecimalFormat;
//
public class MortgagePayment
{
public void calc(double interest, double principle, int monthlypayments)
{
//Declare and construct variables
DecimalFormat decimalPlaces = new DecimalFormat(".00");
double monthlypayments, principle, interest, interestAmount, payment;
int amount, i, paymentsPerPage, lengthOfPause;
// Variable Declaration
int principal[] = {200000, 200000, 200000};// Principal for each calculation
double interestRate[] = {5.35, 5.50, 5.75};// Interest Rate for each interest rate
int totalYears[] = {7, 15, 30};// Length in years for each loan
double monthlyInterest[] = {0, 0, 0};// Monthly Interest
int totalMonths[] = {0, 0, 0};// Number of Months
double monthlyPayment[] = {0, 0, 0};// Monthly Payment
// Calculations Loop
for (int i = 0; i < 3; i++){
monthlyInteres
moreVoting Question: Help with java program?
I did allright with the program, but now I have to add an array of 7 years payment amount @ 5.35%, 15 years payment amount @ 5.5%, and I have yet to be ableto put this into a decimal place of two. This has been a very complicated addition to an easy program. How can I do this?
import java.text.DecimalFormat;
public class MortgagePayment
{
public static void main(String args[]) throws Exception
{
//declare and construct variables
int loanAmt = 200000; // this is the principal loan amount
int loanTerm = 30; // this is the loan term in years
int monthNum = 360; // indicates the monthly line item number
int line = 0;
double intRate = 5.75; // this is the initial interest rate
double monthlyPay = 0; // monthly payment
double monPrinPay; // monthly principal payment
double newLoanBal = 200000; // the loan balance
double monIntPaid; // interest paid
double newIntRate = 0; // monthly interest rate
// displays in the console window
System.out.println();
System.out.println("Welcome to Anne's Mortgage Payment Calculator");
System.out.println();
System.out.println("This program will calculate and display: (1) Monthly mortgage payments");
System.out.println("The principal loan amount = $" + loanAmt);
System.out.println("The interest rate = " + intRate + "%");
System.out.println("The term of the loan = " + loanTerm + " years");
// construct the formulas
loanTerm = loanTerm * 12;
newIntRate = (intRate * .01) / 12;
monthlyPay = loanAmt * newIntRate / (1 - Math.pow(1 + newIntRate, - loanTerm));
// displays the variable information and formula results
System.out.println();
System.out.println("The monthly payment for a $" + loanAmt + " over a " + loanTerm + "-month term (30 years) at a ");
System.out.println(intRate + "% interest rate = $" + monthlyPay);
System.out.println();
}
}
moreResolved Question: This code will not compile..I keep getting the same error about the end bracket..help?
I am having a hard time just finishing this code,
and keep getting the same error about the parser
not being able to finish properly.
import java.text.DecimalFormat;import java.text.DecimalFormat;
public class MortgageCalculatorWeek4 {
// Initial values set for the fields
public static double amountFix = 200000; //Initial mortgage amount
public static int[] term = {7, 15, 30}; // hard coded array of terms
public static double[] interest = {.0535, .0550, .0575}; // hardcoded array of loans
/**
* Computes the monthly payment based on the loan amount, rate, and length of the loan
* @param loanAmt double - Loan amount
* @param rate double - Loan rate
* @param term int - length of the loan
* @version 3.0
* @author MM
*/
public double computePayment(double loanAmt, double rate, int term)
{
double mrate; // mortgage rate
double months; // months
double answer; // result
months = term * 12; //Gets number of months
mrate = rate / 100.0 / 12.0; //Gets monthly rate from annual
answer = loanAmt * mrate / (1 - Math.pow ((1 + mrate),(-months)));
return answer; // return result
}
/** This is the section where all the calculations are performed and printed
* @version 3.00
* @author MM
*/
public void setCalc()
{
boolean displayHeader = true; // boolean which decides what header should be displayed
int array = 0; // array index
double computePayment;
double ipaid;
for(array = 0 ;array<3;array++){
computePayment = amountFix; // assign initial value
double monthlyPayment = new Double(computePayment(amountFix, interest[array]*100,term[array])); // calculate monthly payment
printMonthlyPayment(monthlyPayment,interest[array],term[array]); // display monthly payment
for(int month = 1; month <= (term[array] * 12) ; month++)
{
// calculate interest and balance
ipaid = computePayment * (interest[array] / 12);
computePayment -= (monthlyPayment - ipaid);
if(month == term[array] * 12 && computePayment < 0) {
computePayment *= -1;
}
if(displayHeader){ // if it's needed displayHeader
headerPrinter(month);
}
displayHeader = false; // set displayHeader to false again
printAmortisation(month,ipaid,computePayment); // display results
if((month%12) == 0){
if(!(month == (term[term.length-1]*12) && (term.length-1 == array))){ // if month is different of value in last term
continueMessage(); // print continue message
displayHeader = true; // set display header to true
}else{
endProgramMessage(); // else display end program message
System.exit(1); // and finish program
}
try{
System.in.read();
}catch (Exception ex){
ex.printStackTrace(); // if any exception occurs print stack trace
}
}
moreVoting Question: Need help finishing up this java code?
I keep getting an error that tells me the end brackets
are incorrect and I cannot finish compiling my code. What am I doing wrong ending this code?
//
public class MortgagePayment
{
public static void main (String[] args)
{
//Declare and construct variables
DecimalFormat decimalPlaces = new DecimalFormat(".00");
double monthlypayments, principle,interest,
interestAmount, payment;
int amount, i, paymentsPerPage, lengthOfPause;
/* Below are the values used in the formula
for calculating the monthly mortgage payment amount
*/
interest = 0.0575; //Interest rate
principle = 200000; //Amount borrowed
monthlypayments = 360; //Number of monthly payments
//This is the formula used to calculate the monthly payment
payment = principle * ( (interest / 12.0) / (1 - Math.pow( (1 + (interest / 12.0)),-monthlypayments) ));
//Output to screen
System.out.println("Principle = $"+decimalPlaces.format(principle)); //The loan amount
System.out.println("Interest Rate ="+interest*100 +"%"); //The interest rate
System.out.println("Monthly Payments = $"+decimalPlaces.format(monthlypayments)); //The number of payments
System.out.print("Payment per Month = $"); //The monthly payment amount
System.out.println(decimalPlaces.format(payment)); //formats the payment amount to two decimals
System.out.println("**************************");
System.out.println("**************************");
lengthOfPause = 5; //The amount of time (in seconds) to pause the page
paymentsPerPage = 20; //The number of payments to view per page
i = 1;
for(i = 1; i <= 360; i++)
{
System.out.println("Payment " + i + ":");
System.out.println("----------");
System.out.println("Payment Amount: $ " + decimalPlaces.format(payment));
interestAmount = ((interest / 12) * principle);
System.out.println("Interest Amount: $ " + decimalPlaces.format(interestAmount));
// You also have to calculate interest and add that back in.
principle = (principle - payment) + interestAmount;
System.out.println("Loan Balance: $ " + decimalPlaces.format(principle));
System.out.println("----------");
System.out.println("");
if(((i - 1) % paymentsPerPage) == 0)
{
try{Thread.sleep(lengthOfPause * 1000);} //This is a pause function.
catch(InterruptedException ie){}
{
{
moreResolved Question: Help correct this code until it runs-interest needs to increase-numbers rounded?
//This program will show how much you will pay per
//month if you take out a loan for $200,000.00 and pay it back
//in 30 years. The formula to calculate mortgage is as follows:
//R=Pi/1-(1+1)-n(sqrt)
//R= Monthly Payment, P= Amount Borrowed, r= Annual Interest Rate (decimal), i= Interest
//rate per compounding period r/12, n= Number of months to repay (360)
//This calculator will also show the loan balance and interest paid
//for each payment over the term of the loan.
//
import java.text.DecimalFormat;
public class MortgagePaymentFranklin
{
public static void main(String args[]) throws Exception
{
//declare and construct variables
int loanAmt = 200000; // this is the principal loan amount
int loanTerm = 30;
// this is the loan term in years
int monthNum = 360;
// indicates the monthly line item number
int line = 0;
double intRate = 5.75;
// this is the initial interest rate
double monthlyPay = 0.0;
// monthly payment
double monPrinPay; // monthly principal payment
double newLoanBal = 200000;
// the loan balance
double monIntPaid; // interest paid
double newIntRate = 0;
// monthly interest rate
// displays in the console window
System.out.println();
System.out.println("Welcome to Anne's Mortgage Payment Calculator");
System.out.println();
System.out.println("This program will calculate and display: (1) Monthly mortgage payments");
System.out.println("The principal loan amount = $" + loanAmt);
System.out.println("The interest rate = " + intRate + "%");
System.out.println("The term of the loan = " + loanTerm + " years");
// construct the formulas
loanTerm = loanTerm * 12;
newIntRate = (intRate * .01) / 12;
monthlyPay = loanAmt * newIntRate / (1 - Math.pow(1 + newIntRate, - loanTerm));
// displays variable info and formula results
System.out.println();
System.out.println("The monthly payment for a $" + loanAmt + " over a " + loanTerm + "-month term (30 years) at a ");
System.out.println(intRate + "% interest rate = $" + monthlyPay);
System.out.println();
System.out.println("Listed below are the monthly interest rates, monthly payments, interest");
System.out.println("payments, and loan balances for the term of the loan:");
System.out.println();
System.out.println("Interest Rate\t\tMonthly Payment\t\tInterest Paid\tLoan Balance");
System.out.println("-------------\t\t---------------\t\t-------------\t------------");
// constructing formulas for monthly interest paid, monthly principal paid, and new loan balance
monIntPaid = newIntRate * newLoanBal;
monPrinPay = monthlyPay - monIntPaid;
newLoanBal = loanAmt - monPrinPay;
// Begins while loop
while(monthNum > 0)
{
System.out.println(newIntRate + "%\t$" + monthlyPay + "\t$" + monIntPaid + "\t\t$" + newLoanBal);
monthNum--;
newIntRate = newLoanBal * monIntPaid;
monPrinPay = monthlyPay - monIntPaid;
newLoanBal = newLoanBal - monthlyPay + monIntPaid;
if(line == 1)
{
line = 0;
try
{
Thread.sleep(2000);
}
catch (InterruptedException e)
{
}
}
else
{
line++;
}
}
}
}
moreResolved Question: The following data pertains to the household of Mary and John at the end of the year:?
Assets Liabilities
House $250,000 Mortgage loan $200,000
Stocks and bonds 40,000 Credit card debt 10,000
Money 2,000 Car loan 5,000
Furniture 5,000
Car 13,000
Savings account 5,000
Calculate the sum of real assets and financial assets and total assets of the household.
Calculate the total liabilities and the net worth of the household.
moreResolved Question: Can I convert my ARM to a FR Mortgage now?
Ok, in May of 2007 I bought my first house. Because we made too much $$ they said we couldn't do FHA. We ended up getting talked into an 80/20 with 80% being a FR conventional loan for $150k at I believe it was 6.25% (it might be a smidge lower) and about $38k in an ARM HELOC at prime plus one. I don't remember the cap, but when I calculated it, it was definintely affordable for us- the cap doesn't scare me beacuse we wouldn't have purchased the house if we couldn't afford it. We actually bought an extremely affordable house (4bed, 2bath, 2000 sq ft 1acre for $188k) and we were approved for somewhere around $400k. We make decent money, our jobs are stable and we have absolutely no debt. My question is I have heard that I cannot refi my HELOC into a fixed loan. I would either just want to lock in the rate on the HELOC (best bet since rate is so low now) or add the $37k to the 30yr FR mortgage we already have. I have heard 2 things: 1) If we don't have $37k in equity in the house then we can't do it, and 2) you can't convert a HELOC at all -- though I have to read my rider, I haven't done so yet, just thought of this today when rates dropped.
Does anyone know the truth? Also, how much would it cost to refi something like this. I figured it would be approximately as much as a closing, perhaps slightly less?
Oh yeah and 1 more thing that may factor in. While there is nothing wrong with our house we do want to move closer to work (an hours drive away). As soon as the housing market bounces back, we want to put our house on the market and I'm hoping to at least get $209k for it. That may not be for 2 years or so, but I'm just wondering if it would even be worth it to bother to re-fi if we aren't planning on staying in the house much longer. We also have a solid offer from the people who sold us the house to buy it back from us at the price we paid for it (I told them to take a flying leap if they think I'm that stupid- I'm not, and I'd rather sit on the house than take a loss, thanks.) Oh and I'm guessing, but I have been told by a couple realtors that I know, that the house is worth about $199k now. (of course that is subjective because if no one is buying then it isn't worth anything really.)
Oh this is all good news, thanks for the answers. I am going to call around next week after I look over my documents. I am 99% sure we are not upside down on the loan for the simple fact that in NC we aren't facing the same real estate crisis as most other places. Market is still good here. On top of that I have been watching houses in the area sell and I am pretty sure we'd get more for our house than we paid. Also, we bought it from some desparate people who got transferred, I think the house was undervalued when we bought. Our FICO scores are excellent. Mine is around 750 and BF is around 800. We aren't in trouble with paying; we could pay three times our mortgage and still be fine, that is why we got a cheaper house. I just want to lock in the rate because I know they are going back up (they can't go any further down!!!). All I am trying to figure out is how to lock in my rate. I always pay much much more than the minimum anyway. :) Thanks again, you've all really helped!
moreResolved Question: How can I best calculate my monthly mortgage payment?
I'm taking a loan for $275,100, 6.0% fixed 30 apr. I'm putting 10% down and the annual taxes look to be about $5,000. With PMI, what should i expect my monthly payment to be? I live in Florida.
moreResolved Question: I need some financial advice in regards to my mortgage?
I recently got a home loan and paid $440.00 to lock in an interest rate at 8.85%. 2 weeks after settlement I found out that my interest rate was locked in at 9.09% but the repayments had been calculated at 8.85%. I spoke to the bank numerous times and was told that the interest rate would be fixed. After many weeks and many more calls from me I was advised that the interest rate cannot be fixed but the manager offered to calculate the difference and pay it into our mortgage 6 monthly, but to do this I would need to pay $1500.00 (the difference over the 2 year fixed rate between 8.59 - discounted rate - and 9.09%.) We declined this. The bank has now come back and advised us that they are prepared to credit the mortgage with $1400.00 which is the difference in the interest rate between 8.59 & 9.09%, they will do this as soon as we advise that is the way we want to go. As this is our first mortgage I cannot see if this is any benefit to us. We need to get back to the bank with the outcome but are not sure if we should accept this. The bank has told me that as they left it more than 14 days to fix up the mistake, they now physically cannot put it back to 8.85%. Please advise which way we should go or if there is someone who will help me outside of the bank that we do not have to pay for.
Sorry I should have clarified – I am in Australia – And this was before the interest rate decrease. We paid for it to be locked in at 8.85% for 2 years. A mortgage (Not sure what type sorry). The loan docs say 8.85%.
we paid for it to be locked at 8.85% but NAB locked it at 9.09% and now say because they have taken so long the only way to fix it is by paying the difference in the correct rate of 8.85% to 9.09%. They have promised that this will go onto the home loan immediately, but is this really a fix for us or the banks way of getting us off their backs ?
moreVoting Question: Finance Question please help me calculate my answer was $6,400.59 anyone know if that is correct?
Assume that your 15-year home mortgage loan amount is $750,000.00 and interest rate (APR) is 6.168%. Interest is compounded monthly. Calculate the monthly payment.
moreVoting Question: Mortgage Commitment – is this Reasonable or Completely Wrong?
Hi All,
I wanted to ask whether the following mortgage commitment I received from a small bank is reasonable or completely wrong(?)
The mortgage commitment includes the following statement: "the loan balance upon maturity (5 years), with ALL INTEREST, charges and accessories, shall become due and payable on that date…. the mortgage will become due and payable in 60 months at which time the borrower, if all payments are made on the due date and any prepayment privilege is not used, will owe $155,000" (I rounded).
However, the loan amount (principal) is only $120,000! My question is is this normal that after 5 years the bank has calculated I will owe $155,000??
I understand how they calculated it – they added the present value of all future interest payments (30 years) to the amount I will owe. However, is this standard meaning most banks do it this way or is it completely wrong to the extent I should not take their loan?
What happens after 5 years if I want to continue with a different bank??
Lastly, in another section in the contract they mentioned" the mortgage is not renewable (after 5 years) on the same terms as described above (referring to interest and amortization). Therefore, on one hand if I take their mortgage it will never make sense to switch to a different bank after the 5 years term due to a HUGE penalty - will owe $155K where initial loan is only $120K. On the other hand if I stay with them they can now (after 5 years) charge any interest they want as they mentioned above.
I guess the bottom line is if this is a common/standard practice and most banks do it this way I will take the mortgage however if this is completely wrong/unreasonable I will not.
Is it even LEGAL for a bank to charge future interest (25 years interest) at the end of a term (5 years)? Don't they have to follow certain rules/regulations too?
I would appreciate any advice on the topic.
THANKS & REGARDS,
Neil
PS. it's a variable rate mortgage and the monthly payments include interest and principal
moreVoting Question: I need help answering 80 Finance Questions.?
Please answer any of them you know. Just one answer will help me a lot!
PART I: Conceptual/Multiple Choice
1. The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to
a. Maximize its expected total corporate income.
b. Maximize its expected EPS.
c. Minimize the chances of losses.
d. Maximize the stock price per share over the long run, which is the stock’s intrinsic value.
e. Maximize the stock price on a specific target date.
2. The value of an investment after one or more periods of time is called the:
a. simple value.
b. present value.
c. discounted value.
d. future value.
e. interest on interest value.
3. The process of accumulating interest in an investment over time to earn more interest is called:
a. discounting.
b. compounding.
c. complexing.
d. multiplying.
e. indexing.
4. All else constant, the present value will __________ as the period of time decreases, given an interest rate greater than zero.
a. remain constant
b. decrease
c. increase
d. either remain constant or decrease
e. either remain constant or increase
5. The relationship between the present value and the interest rate is best described as:
a. direct.
b. inverse.
c. unrelated.
d. uncorrelated.
e. vertical.
6. An annuity for which the cash flows occur at the beginning of each time period is called a(n):
a. ordinary annuity.
b. beginning annuity.
c. annuity due.
d. perpetuity.
e. perpetuity due.
7. The effective annual rate is defined as the interest rate that is:
a. compounded at regular intervals throughout the year.
b. equal to a monthly rate multiplied by twelve.
c. computed by multiplying the rate per period by the number of periods per year.
d. expressed as if it were compounded once per year.
e. compounded only once over a multi-year period.
8. You are analyzing the value of an investment by calculating the present value of its expected cash flows. Which of the following would cause the investment to look better?
a. The discount rate decreases.
b. The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same.
c. The discount rate increases.
d. The riskiness of the project’s cash flows increases.
e. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years.
9. Which of the following statements regarding a 30-year, $100,000 mortgage with a nominal interest rate of 10%, compounded monthly, is NOT CORRECT?
a. The monthly payments will decline over time.
b. The proportion of the monthly payment that represents interest will be lower for the last payment than for the first payment on the loan.
c. The total dollar amount of principal being paid off each month gets larger as the loan approaches maturity.
d. The amount paid toward interest in the first payment would be lower if the nominal interest rate were 8%.
e. Over 90% of the first payment goes toward interest.
10. Which of the following statements is CORRECT?
a. Four key financial statements are the balance sheet, the income statement, the statement of cash flows, and the statement of retained earnings.
b. The balance sheet gives us a picture of the firm’s financial situation over a period of time.
c. The income statement gives us a snapshot of what is happening at a point in time.
d. The statement of cash flows tells us how much cash the firm has in the form of currency and demand deposits.
e. The statement of cash needs tells us how much cash the firm will require during some future period, generally a month or a year.
11. Other things held constant, which of the following actions would increase the amount of cash on a company’s balance sheet?
a. The company issues new common stock.
b. The company repurchases common stock.
c. The company pays a dividend.
d. The company purchases a new piece of equipment.
e. The company gives customers more time to pay their bills.
12. Which of the following statements is CORRECT?
a. The statement of cash flows shows where the firm’s cash is located, with a listing of all banks and brokerage houses where cash is on deposit.
b. The statement of cash flows for 2005 shows how much the firm’s cash (the total of currency, bank deposits, and short-term liquid securities, or cash equivalents) increased or decreased during 2005.
c. The statement of cash flows reflects cash flows from operations and from borrowings, but it does not reflect cash obtained by selling new common stock.
d. The statement of cash flows reflects cash flows from operations, but it does not reflect the effects of buying or selling fixed assets.
e. The statement of cash flows reflects cash flows from continuing operations, but it does not reflect the effects of changes in working capital.
13. Which of the following statements is CORRECT?
a. Accounts receivable are reported as a current liability
moreVoting Question: Please explain a HELOC is/isn't deductible with AMT? This is confusing.?
Thanks in advance to any tax savvy kind soul who can explain this clearly. It would be nice to have links to support your answer.
I have read that if a person takes out a Home Equity Line of Credit for $100k, that all the interest on that loan is tax deductible even if it isn't used directly for the house. Like if some or all of the money was used for a car, student loans, furniture, etc., as long as the loan amount is not more than $100k. (Nothing unusual, like the loan amount is worth more than the house.)
Then I was reading about AMT where it says that some mortgage interest paid cannot be deducted for AMT purposes. This is confusing. Is that right? So how is this handled on the tax return?
Also, how do you determine the amount of the interest that isn't deductible? If the HELOC was used like revolving credit for some things which may be deductible (such as for the house), while some things which aren't?
How might that be calculated? Do you add up all the checks written on the HELOC, figure out how many months they were loaned and calculate it against the interest rate? Or can this be estimated? Thanks!
moreResolved Question: Java Mortgage calculator help.?
Can someone help me flesh out the details of this? I need to make a mortgage calculator in java does the following
The user will be asked to enter to the amount of the mortgage loan, the term in years of the mortgage, and an annual interest rate. The amount of the mortgage loan shall be greater than 0 and not exceed 10,000,000 dollars. The minimum term for the loan is five years, with a maximum of 30 years. In addition to the user being able to supply the mortgage information the application will display three of the most commonly used mortgages and the user shall be able to select these mortgages instead of supplying the mortgage information. Once the user has provided the mortgage information, the program shall calculate the monthly mortgage payment and the amortization table for the life of the mortgage. For each month the amortization table shall display the loan period, loan balance, principal balance, interest balance, principal paid and interest paid.
Here is mortgage payment formula.
PMT = (PV x IR) / (1 - (1 + IR)^-NP)
Where:
PMT = Monthly Payment
PV = Principle Value (amount of loan)
IR = Interest Rate, by month
NP = Note Period, or mortgage term in months
IR = apr/100/12
NP = term * 12
if Apr > 0 AND APR <= 100 then
PMT = (Principal * IR)/(1-(1 + IR)-np)
else if Apr = 0
PMT = Principal/NP
end if
I need help I am not so good with Java. As long as i get the calculator part of this done i think i can handle the rest.
moreResolved Question: how to get out as a co-signer?
my sister put me as a co-signer without my permission.
I don't want any legal action against her.
It is an education loan.
I'm in communication with my sister and
the education loan company.
the loan company tells me the only way out
is after 48 consecutive payments are made from
the primary borrower( my sister). They told me that's about 4 yrs.
I want to buy a house, this loan is on my credit report
but my sister hasn't been late on payments (and, yes, I
know they'll come after me if she doesn't pay or whatever)
I'm wondering if the mortgage company will still calculate
that loan as part of MY debt even though i'm not the primary
borrow and the payments are not late or in default or whatever.
Im not upset at her, i've forgiven her. And I don't want any
fraud or legal action towards her (i don't want to get involved
in anything like that) So can there be any other way of getting
out the loan or at least off my credit without waiting 4 YEARS!
Thanks in advance : - )
moreResolved Question: can a co-signer get out a loan?
my sister put me as a co-signer without my permission.
I don't want any legal action against her.
It is an education loan.
I'm in communication with my sister and
the education loan company.
the loan company tells me the only way out
is after 48 consecutive payments are made from
the primary borrower( my sister). They told me that's about 4 yrs.
I want to buy a house, this loan is on my credit report
but my sister hasn't been late on payments (and, yes, I
know they'll come after me if she doesn't pay or whatever)
I'm wondering if the mortgage company will still calculate
that loan as part of MY debt even though i'm not the primary
borrow and the payments are not late or in default or whatever.
Im not upset at her, i've forgiven her. And I don't want any
fraud or legal action towards her (i don't want to get involved
in anything like that) So can there be any other way of getting
out the loan or at least off my credit without waiting 4 YEARS!
Thanks in advance : - )
My sister signed my name for
her loan. That's why I wrote "without my permission". Also, why I didn't want to
go the fraud route. thxs for the answers.
moreVoting Question: getting out as a co-signer?
my sister put me as a co-signer without my permission.
I don't want any legal action against her.
It is an education loan.
I'm in communication with my sister and
the education loan company.
the loan company tells me the only way out
is after 48 consecutive payments are made from
the primary borrower( my sister). They told me that's about 4 yrs.
I want to buy a house, this loan is on my credit report
but my sister hasn't been late on payments (and, yes, I
know they'll come after me if she doesn't pay or whatever)
I'm wondering if the mortgage company will still calculate
that loan as part of MY debt even though i'm not the primary
borrow and the payments are not late or in default or whatever.
Im not upset at her, i've forgiven her. And I don't want any
fraud or legal action towards her (i don't want to get involved
in anything like that) So can there be any other way of getting
out the loan or at least off my credit without waiting 4 YEARS!
Thanks in advance : - )
moreResolved Question: I want to buy a house, is it possible?
I am interested in buying a house that is 86000 dollars, I haven't been prequalified yet but after taxes my take home income is 3500 with my outgoing debt being just under 800 dollars with 2 car payments one with just under a year left and the other with 3 years and one credit card.I calculated the estimated mortgage payment on the house I'm interested in buying including taxes and insurance and its about 800 dollars.I've never bought a house before and I don't know what to expect but if anyone out there has any information do you think I'd be able to get a loan for a house for that amount, I should probably mention I'm looking for a 0 down loan.
moreResolved Question: Is it true that raising taxes on income $250,000 + means only the rich will get taxed by Obama?
I walked up and down our busiest community street this morning,
and I asked the small business owners if that amount of $250,000 would affect them; I visited five ma and pop pizza shops, 2 pizza
franchises, a family cleaning business, a residential handyman, a
painter with only 4 employees, one small hoagie shop owned by an
old man, one hippie ty-dye clothing shop and a chinese laundry owned
by Chinese folks for three generations now.
What did I find out? THAT OBAMA WOULD BE TAXING EVERY
SINGLE ONE OF THEM. EVERY ONE. WHY? BECAUSE THAT
AMOUNT OF MONEY, $250,000.00 IS NOT NET INCOME, IT IS
GROSS INCOME.
That means it is only the amount of business done, before ANY AND ALL EXPENSES INCLUDING PAYROLL, VEHICLES, UTILITIES, RENTS, BONUSES, EVERYTHING - and every single one of these
little tiny businesses GROSS THAT AMOUNT OR BETTER... Yet,
the painter with 4 employees LOST MONEY LAST YEAR earning that much. When Senator Obama raises his taxes, quess what:
HE IS OUT OF BUSINESS AND THERE GOES FOUR MORE PEOPLE ON THE JOBLESS LIST. JOBS WILL BE LOST BY THE
HUNDREDS OF THOUSANDS. I calculated from the 36 businesses
I spoke with, that out of those 36 businesses, AN OBAMA TAX INCREASE WILL MEAN THE DEMISE OF AT LEAST 9 OF THOSE
SMALL BUSINESSES, AND FOR EVERY ONE OF THE OTHERS IT
MEANS AT LEAST 2 EMPLOYEES MUST BE FIRED.
Thats the facts; When John McCain is being blamed by Obama when it was Obama and HIS BABY - ACORN - who forced banks to loan
money to people who could not afford those mortgages, its a disgrace.
John McCain is the one who wrote the reform act for Freddie and Fannie mae two years ago, and THE SAME DEMOCRATS INCLUDING OBAMA WHO REFUSED A VOTE ON IT, ARE THE SAME CROOKS THAT ARE LYING TO THE PEOPLE TODAY.
JOHN MCCAIN WANTS THEM JAILED. HE WANTS THEM TO
PAY FOR STEALING OUR MONEY, AND THEY SHOULD PAY AND THEY SHOULD BE IN JAIL FOR THEIR CORRUPTION.
WHY IN GODS NAME, DO PEOPLE WISH TO PUT INTO OFFICE
A CROOK? THAT IS EXACTLY WHAT OBAMA IS, AND IF YOU PUT HIM IN THE WHITE HOUSE, HE WILL TAKE WITH HIM ALL THE CROOKS AND RADICALS THAT HE ASSOCIATES WITH AND YOU CAN SAY GOODBYE TO ANY AMERICAN DREAM ANY OF US
HAD OR HAVE.
DOES ANYONE HAVE ENOUGH OF A BRAIN ON THEIR SHOULDER TO UNDERSTAND THE RISK OF PUTTING THIS NUT
THIS RADICAL INTO THE WHITE HOUSE?/ ANYBODY?
note; Liberals, you are part of the problem, so don't bother answering my questions because if i wanted to hear more lies and more radicalism i would put on your messiah and listen to more lies. thank you.
http://www.theobamafile.com
http://www.townhall.com
moreVoting Question: I am applying for a home EQUITY LOAN how does that differ from a regular mortgage & does experian look at it ?
I am applying for a home "EQUITY LOAN" how does that differ from a regular mortgage? & does experian look at it the same when calculating there "credit scores" ? ( I know they look at "EQUITY LINES OF CREDIT" negatively if used to the max.
moreVoting Question: Questions from a first-time home buyer?
My husband and I are looking at buying our first house. We've been in an apartment for a year and a half now and we're more than ready to move into a house and actually have some counter space and decently sized bedrooms haha.
How do you calculate mortgage payments? I saw some mortgage calculators online, but they were not accurate. They didn't ask for interest rates or property taxes or anything like that. They just divided the cost of the house over 30 years. I would have assumed that you multiply the interest rate (we'll say 6%) by the cost of the house. Then divide the actual loan amount by 30 and add the interest to it.
80,000 x 0.06= $4,800 (per year, interest).
80,000/30= 2,667 + 4,800= $7,466/year or $622/month.
Is that how you do it? Am I doing it wrong?
Also, my husband is paying back his school loans. Our cars are paid off. We spend $65/week in groceries, $125/month for car insurance, $116/health insurance, etc. We don't waste money on frivolous crap... And according to this mortgage calculator online, it says he needs to make $61,000. If the mortgage + utilities = what we pay in rent now, and we're paying that on time every month with no problems, why does it say his salary needs to be almost twice what it is now?
This is stressful...
moreResolved Question: What is a typical income requirement for a mortgage? 4x? Also, no initial cost mortgages, worth it?
I'm looking to find out what banks would "typically" require for income for a mortgage. Also, if they would look at gross pay or net pay, what debts they look for to calculate it, and if they include home-owner's insurance in the estimate of a monthly payment. Also, my wife and I have student loans, but they are on deferment since we are both in school. Would it make any different if we got the loan before my wife's payment became due in January? I'm not interested in doing any kind of high risk loan. I just want a strictly "safe" 20% down, 30 year mortgage.
My story is this: I'm trying to finish college. I decided that I wanted to get married young, then we had my daughter which slowed school down a lot. I had about a year before finishing, then we just found out that my wife was pregnant again, even though we took precautions against it. Now that I'm looking at having two children, I feel like I need to get out of these apartment complexes and get into a solid home that I can call my own. I understand that there are plenty of benefits to apartments, like on-site maintenance, but I'm pretty handy and the benefits are losing their value. I've looked around at several houses in the area and found some relatively cheap houses on the market that would fit my wife's and my tastes. I have access to enough money for a 20% down payment for most of these houses. My biggest worry about affording a house would be the closing and other associated costs. Bank of America offers a no-closing-cost loan, but I feel like they might have such a high interest rate that it wouldn't even be worth it. Does anyone have any experience with this loan or something else similar?
moreResolved Question: Exactly who's fault is it again?
Author Bio
Letter to the Editor
The Public Policy
By Peter Ferrara
Published 10/1/2008 12:08:01 AM
According to House Speaker Nancy Pelosi, the financial crisis is all due to the Bush Administration's "right wing ideology of anything goes, no supervision, no oversight, no regulation."
But at a hearing in the House in 2004, now available in video on YouTube, the Republicans sought to expand supervision and regulation, over Fannie Mae and Freddie Mac. Federal regulators testified that the reckless financial practices of these two government-sponsored enterprises threatened the entire financial system. Republican after Republican called for a new regulatory authority to supervise Fannie and Freddie and impose standard bank regulation on them.
Franklin Raines, the former Clinton budget director who went on to serve as chairman and CEO of Fannie Mae, testified that the mortgage-related securities of these two organizations, which have now rocked the entire financial world, were "riskless." During his tenure, Raines criminally led Fannie Mae to falsify its books so that he would qualify for excessive bonuses and compensation eventually totaling $90 million.
But the Democrats excoriated the Republicans for criticizing the wonderful practices of Fannie and Freddie that had been so successful in achieving their goals of affordable housing. The Republican concerns for safety and soundness were dismissed as trumped up efforts to frame the brilliant leadership of Mr. Raines, and said to show once again that Republicans don't care about the middle class and the poor. Barney Frank, now chairman of the House Financial Services Committee, foolishly laughed off concerns over safety and soundness without offering any evidence to rebut these concerns. Instead, he shamefully led the Democrats in attacking the regulators, who had provided the evidence that Fannie and Freddie were increasingly threatening the safety and soundness of the entire financial system.
The following year John McCain was one of three co-sponsors of legislation to impose such regulatory supervision and controls over Fannie and Freddie. The Bush Administration supported this as well, in one of its four attempts to win legislative approval for such expanded regulatory authority. But the Democrats shouted these proposals down as an assault on affordable housing for the middle class and the poor.
So it was the Republicans who tried time and again to expand proper regulatory controls to prevent this crisis. And it was the Democrats who stopped them because such regulation threatened their policy of turning Fannie and Freddie into welfare programs. It is Chairman Barney Frank, not SEC Chairman Chris Cox, who should resign for his shameful and stupid role in creating this crisis. And if Franklin Raines is not prosecuted and sent to prison for his naked thievery, then we must let all of the Enron convicts out of jail and issue them a national apology.
Apart from this, there is no other instance in which deregulation or lack of regulation played any significant role in the current crisis. Just what "no regulation" was Nancy Pelosi talking about? Does she want the government to stare over the shoulders of all lenders and tell them what loans they can make and what loans they can't? Going all the way back to the Community Reinvestment Act of 1977, it is the government led by the Democrats and their "affordable housing" policies that have imposed increasingly onerous regulations on lenders, forcing them to make shaky loans to increasingly dubious borrowers on increasingly lax terms, and it is the failure of precisely these loans that is at the root of the current crisis. These are the people that are now going to save us with wise, judicious supervision and regulation?
On exactly what issue is Nancy Pelosi any more knowledgeable than Sarah Palin? Pelosi can't nearly match Palin's expertise on energy policy, nor Palin's record in cutting taxes and spending. In over 20 years in Congress, the ultra-left San Francisco Democrat has distinguished herself only in the mindless repetition of brain dead political propaganda, such as we saw at the beginning of this commentary.
The Democrats have assailed former Senator Phil Gramm for leading the repeal of the Glass-Steagall Act in 1999. But repeal of that outdated regulatory relic from the 1930s, which sought to separate commercial banking from investment banking, has played no role in this financial crisis. Even Clinton's Treasury Secretary Robert Rubin has said as much. Indeed, exactly to the contrary, repeal of Glass-Steagall has been a major factor helping to counter the crisis. It is precisely that repeal that allowed Bank of America to buy out Merrill Lynch, JP Morgan to buy out Bear Stearns, and Barclays Bank to work on buying up the remains of Lehman Brothers. This silly charge is just old, Soviet style propaganda, completely divorced from reality, calculated to mislead the gullible
moreResolved Question: $700b bail out- I oppose it. How about this plan?
Economists please chime in. Review and provide comments.
1. We refinance all the mortgage loans -especially delinquent loans -perhaps leaving out 30 year loans or just including adjustable/5 year or 7 year loans-at today's house values. And fix the interest rate at lowest possible rate for 10 years. This will give people confidence, decrease or fix their mortgage commitment and decrease the foreclosure. All lender is doing is taking property back and selling to mostly an investor or opportunist buyer. Lender is taking a loss anyway. Why not give consumer a break and increase his or her confidence. Nobody wants to lose a house or have bad credit.
2. Take the credit card amount for a consumer, Calculate the original borrowing and then adding a low interest rate-let us say- 8-10% and then fixing a monthly amount for 5 year. So, let us I borrow $10,000 and later borrow another $5000. Original amount would be $1,5000. Add 10% interest (as opposed to 12-18%) and let us for 2 years it comes out to $3,000. Total amount would be $18,000. This will be opposed to current situation where there is revolving recurring charges of interest rate and payment keeps fluctuating. Again, this will give consumer confidence and fix their liability.
This will put responsibility back to where it belongs- to opportunist lenders/banks as well as consumers-both meeting their responsibility but banker and lender writing off some of the debt to move things forward.
I am not an economist and I have not done the math but somehow feel this should solve some of the problems.
What do you think? Math wizards/economists please chime in.
Most importantly write to your Senator. We need everyone to be heard.
I do agree with stopping other expenses such as on war etc.
Did not know about Ron Paul though...thanks for sharing.
moreResolved Question: Interest & Mortgages.. Do you pay the percentage of interest yearly.. See more?
I plan on buying a house soon...
Im totally confised as to how the interest works out..
For example lets just hypothetically say// I borrow 100,000 with a 7% interest rate for 30 years.
Does that mean i will be paying 7,000 in interest per year?
How do you calculate that?
Would that mean i pay 352,000 over the course of the loan?
moreResolved Question: Can anybody explain to me how mortgages really work?
I went to some mortgage calculator website and put those numbers.
Loan amount: $100,000
Interest rate: 5.20 %
Amortization: 25
Monthly mortgage payment will be: $593.04
Yearly: $7116.48
What really confused me was when I calculated the total payment after 25 years.
7116.48 X 25 = $177,912
The question is, how come only %5.20 interest rate will end up paying about 77K over the original 100k price of the property? Or is it how things work out for mortgages? Sorry I'm from 3rd world countries and kinda don't get things right over there.
moreResolved Question: Simple C++ program, not compiling, I'm having trouble?
Please bear with me. I am a first year CS student and I know the mistakes I've probably made are silly.
// Mortgage Calculator
#include <iostream>
#include <string>
#include <iomanip>
#include <cmath>
using namespace std;
int main()
{// User input
cout << "Welcome to Eric's Mortgage Calculator!"<< endl;
string name;
cout << "First,what is your name?" << endl;
getline(cin,name);
string address;
cout << "Your address?" << endl;
cin >> address;
string city;
cout << "Your city?" << endl;
cin >> city;
string state;
cout << "Also, your state?" << endl;
cin >> state;
string zip;
cout << "And your zip code?" << endl;
cin >> zip;
cout << "Okay, now you're house..." << endl;
string cost;
cout << showpoint << fixed << setprecision(2);
cout << "What is the cost of your home?" << endl;
cin >> cost;
string downPayment;
cout << "And how much is the downpayment?" << endl;
cin >> dp;
string ir;
cout << "What is the interest rate of your loan? (Please enter with decimal =))" << endl;
cin >> ir;
string yrs;
cout << "How many years is the loan for?" << endl;
cin >> yrs;
//Calculations and assignments
float num = cost * (ir * (1 + ir));
float num2 = pow(num, 12);
float den = (1 + ir);
float den2 = pow(den, 12);
float den3 = (den2 - 1);
float monthlyPayment = (num2 / den3);
//Output
//Their info
cout << endl;
cout << endl;
cout << "Your information:" << endl;
cout << left ;
cout << "Name:" << name << endl;
cout << "Address:" << address << endl;
cout << "City:" << city << endl;
cout << "State and Zip:" << state << "," << zip << endl;
// Their calculations
cout << endl;
cout << endl;
cout << "And here are your calculations," << name << endl;
cout << "Cost:" << cost << endl;
cout << "Down Payment:" << downPayment << endl;
cout << "Interest rate:" << ir << endl;
cout << "Life of loan:" << yrs << endl;
cout << "Approximate Mortgage Payment:" << monthlyPayment << endl;
I know I'm not declaring the variables right. I think I should be using char or string for some. I also think my syntax for the formula is messed up. Heeeellpp!
By the way this is a program that calculates the monthly payment of a mortgage using the amortization formula.
moreResolved Question: How do I calculate this Mortgage?
Using an Interest only loan. Here's the info
Loan Amount: 25,000,000
Term: 10 Years
APR: 3.9 %
Just paying the Interest, what would the monthly payments be?
moreVoting Question: How do you calculate a smart loan,bullet loan, and Interest-only loan?
With the given info
25,000,000$ Loan
6.8% APR
For a smart loan it says a mortgage payment is made every 2 weeks for half of the monthly mortgage. (Note: Using 30 year traditional mortgage)
For the bullet loan it just says there is a 5 year bullet. The mortgage is for 30 years.
For the interest-only it says 10 years with an APR of 3.9%
Any help is much appreciated.
moreResolved Question: How do I calculate mortgage?
I've worked this out I just can't get an answer
Problem is
There are 2 mortgage options,
1. A 25,000,000 loan at 6.8% APR for 30 years.
2. A 25,000,000 loan at 6.8% APR for 20 years.
moreResolved Question: Fannie & Freddie why not let our mortgages go free?
(I wrote a letter to my Senator back in July this exact question--no answer back!).
I want to know why the government will not let Fannie Mae and Freddie Mac "fail"? I would like to see the government take these over and these two "lending giants" (mostly government owned as it is) be completely government owned? The way I could see the situation is as follows: The government announces that Fannie Mae and Freddie Mac will continue to do business but they are no longer "stock owned corporations", instead the government takes on the debt, distributes the $5 trillion as and "add on" to the already $9.6 Trillion deficit and the taxpayers (as they are now) and bail out each other. The difference being that any person who now has a mortgage purchased by Fannie Mae or Freddie Mac (nearly 50% of all homeowners) would now be "debt free" with no mortgage. The other 50% of people, are the ones that do not comply with Fannie or Freddie guidelines (such as "liar loans"/stated income loans and such... they do not deserve to be "bailed out" as they took on more this than they should have).
The kicker is that no one really knows if their loan is actually owned by Fannie or Freddie, so it's kind of like the "hot list". The next part would be to add on a Federal Tax that would be set up as a "lock box" (as Mr. Gore proposed), the Federal Tax could be calculated to a certain percentage on all homes based off the current assessed values and then each year for, lets say, the next 10 years this tax would go DIRECTLY to paying off the debt taken on by the government for "bailing out" the homeowners. (Make sure some good actuaries’ are hired--that's the tough part).
Here is the best part, now nearly 50% of all persons who now own a home are now mortgage free! This would be a real "stimulus package", with a savings of (if the loans were underwritten the way they were supposed to be) 33% of a person’s income (suggested mortgages shouldn't be more that 33% of a person's gross income).
So the solution is 1. Take on Fannie and Freddie at a federal level--they set the rules. 2. Give a break to the people who have one of these mortgages (they shouldn't have to pay it back twice over)--i.e. distribute the burden. 3. Raise a Federal Tax to pay the debt back via a Federal Real Estate Tax, with a set time period for this deficit to be paid back. This would cause an immediate increase in spending, taxes, and economic growth...
moreResolved Question: Any ideas as of best way to deal with mortgage in a vacant house?
Getting rid of my mortgage payment without hurting the credit that much?
"What would you do in my situation?"
I bought a house in 2005 for 160K, fully financed.
I bought a car few months later for 20K (my fully paid one broke and I needed a new one which represented more monthly payments out of pocket). Additionally I paid for the landscape, gutters, electrical outlets and central air conditioning after I purchased the house, a total of 10K from my pocket that made me put more debt on the credit cards.
So, I started with a mortgage payment of 1K per month, then increased credit card payments while doing all the improvements in the house, and then got a car loan, so in mid 2007 I needed to refinance, and out of the refinancing I paid the credit cards and the car all on escrow without having a penny coming to my pocket . My house got appreciated for 270K at the time, and I took a loan for 190K (for what I pay $1,200 monthly).
In 2008 moved to another state, my house is vacant and for sale for some months now, if an appraiser comes will appraise it for 210K, although no buyer is ready for more than 195K and obviously I won't be able to pay the realtor commissions if I sell at that price considering I owe 190K and that the commissions are of 6% on top of that. My contract anyways is about to expire. I am current in all the mortgage payments.
Since renting in one state and paying mortgage, gardener, insurance, services in the other is becoming quite a burden, I was looking into options, such as a Short Sale. I know that some debt relief was approved later but I don't find anything on the IRS website, all I find is what was passed in 2007/ I would like to know which options I have. I really do not care about my empty/vacant house, I care about my credit. If I rent it I will get about $800 a month (this is after paying the property manager fees, the house is located on the hardest hit by the bubble burst city of the country, so there are not any more movers in line to buy/rent), so I need suggestions as of what could I do. For instance, is there any possible negotiation with the bank to stop the payments for 6 months? This way it will let me try to sell by owner with the help of some local friends.
Both states are non-recourse states. I do not think buying will be a good option at this time, I do not know how the taxes will affect my situation, I just need some ideas.
How do I short sale the house? and then am I responsible for paying for the taxes and how is that calculated (you have all my numbers there). Does the appraisal value at the time of sale play any role on the taxes or forgiveness of taxes?
Please advise,
Thank you!
moreResolved Question: Getting rid of my mortgage payment without hurting the credit that much?
"What would you do in my situation?"
I bought a house in 2005 for 160K, fully financed.
I bought a car few months later for 20K (my fully paid one broke and I needed a new one which represented more monthly payments out of pocket). Additionally I paid for the landscape, gutters, electrical outlets and central air conditioning after I purchased the house, a total of 10K from my pocket that made me put more debt on the credit cards.
So, I started with a mortgage payment of 1K per month, then increased credit card payments while doing all the improvements in the house, and then got a car loan, so in mid 2007 I needed to refinance, and out of the refinancing I paid the credit cards and the car all on escrow without having a penny coming to my pocket . My house got appreciated for 270K at the time, and I took a loan for 190K (for what I pay $1,200 monthly).
In 2008 moved to another state, my house is vacant and for sale for some months now, if an appraiser comes will appraise it for 210K, although no buyer is ready for more than 195K and obviously I won't be able to pay the realtor commissions if I sell at that price considering I owe 190K and that the commissions are of 6% on top of that. My contract anyways is about to expire. I am current in all the mortgage payments.
Since renting in one state and paying mortgage, gardener, insurance, services in the other is becoming quite a burden, I was looking into options, such as a Short Sale. I know that some debt relief was approved later but I don't find anything on the IRS website, all I find is what was passed in 2007/ I would like to know which options I have. I really do not care about my empty/vacant house, I care about my credit. If I rent it I will get about $800 a month, so I need suggestions as of what could I do. For instance, is there any possible negotiation with the bank to stop the payments for 6 months? This way it will let me try to sell by owner with the help of some local friends.
Both states are non-recourse states. I do not think buying will be a good option at this time, I do not know how the taxes will affect my situation, I just need some ideas.
How do I short sale the house? and then am I responsible for paying for the taxes and how is that calculated (you have all my numbers there). Does the appraisal value at the time of sale play any role on the taxes or forgiveness of taxes?
Please advise,
Thank you!
An another thing, what happens if I rent the house in matter of taxes, how will that affect me? It is bad enough not being able to pay the mortgage with the rent to get some penalty in the taxes, thanks.
moreResolved Question: Will A Mortgage Company Refinance Me For Tax Lien?
I was hospitalized 4 years ago and had to have a major surgery with a much longer recovery than I ever anticipated. I live alone, I dropped many of my responsibilities, it all fell by the wayside and actually it is only the last year I'm beginning to catch up. I didn't file that year and I received an IRS letter recently with calculated penalties and interest of a little over $30k. On top of that I have outstanding uncollected hospital bills of about $30k. I have a home I inherited free and clear that is valued around 120k. My question is: Can I find a mortgage company that will deal with me though I have terrible credit and never had a mortgage? What kind of loan amount would be available? And what would likely be the interest range/terms for someone like me? Thing is, I don't want to lose my house right when I'm just beginning to pull my life back together. thanks in advance for your thoughts.
moreResolved Question: Are we foolish to trust the credit reporting agencies?
Since they do not use debt/equity ratios or income amounts to calculate credit risk.
The credit rating agencies gave a high rating to institutions with bad loans given to unworthy borrowers in the sub-prime mortgage mess. Are the consumer credit rating agencies creating a bigger disaster with their voodoo credit rating system?
Credit rating agencies are now under scrutiny for giving investment-grade ratings to securitization transactions (CDOs and MBSs) based on subprime mortgage loans.
Is concumer credit the next crisis?
moreResolved Question: can someone please xplain this answer to me?
"Consider the following scenario: John buys a house for $250,000 and takes out a five year adjustable rate mortgage with a beginning rate of 5%. He makes annual payments rather than monthly payments. ately for John, interest rates go up by 1% for each of the 5 years of his loan (Year 1 is 5%, Year 2 is 6%, Year 3 is 7%, Year 4 is 8%, Year 5 is 9%). Calculate the amount of John's payment over the life of his loan. Compare these findings if he would have taken out a fix rate loan for the same period at 6.25%. Which do you think is the better deal?
"
YearPMTInterestPrincipal$250,000
0.055 $57,743.70 12500$45,243.70 $104,756.30
0.064 $30,231.78 $6,285.38 $23,946.40 $80,809.90
0.073 $30,792.75 $5,656.69 $25,136.05 $55,673.85
0.082 $31,220.18 $4,453.91 $26,766.27 $28,907.57
0.091 $31,509.26 $2,601.68 $28,907.57 $0.00
Total $181,497.66
Loan
Year PMTInterestPrincipal$150,000
0.06255 $35,851.98 9375 $26,476.98 $123,523.02
0.06254$35,851.98 $7,720.19 $28,131.79 $95,391.23
0.06253$35,851.98 $5,961.95 $29,890.03 $65,501.20
0.06252$35,851.98 $4,093.82 $31,758.16 $33,743.04
0.06251$35,851.98 $2,108.94 $33,743.04 $0.00
Total$179,259.91
How do you get the PMT and the Principal? I'm confused Someone please explain
Sorry for how it can out. I hope you can read it. Also how did the loan go from 250,000 to 150,000?
moreResolved Question: Why do home affordability calculators come back with such a small number?
When I enter information into a calculator on any website that offers them, it comes back saying I can only afford to pay a mortgage of 300ish a month. I currently pay almost 700 a month in rent and I'm fine, and I could pay higher and still be FINE. Where are they coming up with this? If I were to go talk to a loan officer at a bank, would they do something similar and only approve me for a very low amount? I mean, I could probably pay the amount their saying I could afford 3 times in a month.
A little info here. I was calculating the gross income (which would include myself and my fiance together) at about 3500, total debt payments required each month at 500 (not including mortgage/rent related expenses). And the number it came back with in the 300s. Someone please enlighten me, maybe I'm missing why they think I'm so destitute. I'm really only trying to be approved for a 110,000 loan. Also eligible for VA loan if that helps.
moreResolved Question: Question on mortgage/interest rates?
How do you calculate the monthly payment (average) for say a 20 year mortgage of $120,000?
Also, what is the average interest on such a loan?
I'm in Wisconsin if that makes a difference.
Thanks!
moreResolved Question: Manual Underwriting for mortgage?
My mortgage received underwriting approval with conditions (gift letter, appraisal etc.) After the title search the taxes came in higher then my lender first calculated (approximately $120 per month) - the lender now says that it has pushed me to manual underwriting. I am applying for an FHA loan. I have documented income of $86k, my mid score is 612, I am applying with Countrywide. Am I setting myself up for a let down. I have about $5k in credit cards - no lates at all but discharged bankruptcy in the past which brought my score down. Any advice would be helpful.
She called and asked for my landlords info - I am not so worried about the info check because I was completely honest - I just got nervous that this was a bad sign. Thanks!
moreResolved Question: what is your debt to credit ratio?
I just did my credit report online, and my debt to credit ratio is 83%. I know what debt to income ratio is but when i googled it it told me that debt to credit is how much of your credit you have used up. Now i went back to my credit report and saw that my mortgage is 94%, my installment is 88% but my revolving is only 7%. On further look i saw that installment is just my car paymetn, and revolving is all my credit cards. I was under the impression that only credit cards were calculated in your debt to credit ratio. So when a lender looks at that am i being punished for my mortgage and my car payment? I mean 7% of my credit cards is pretty damn good. At least i thought it was. My debt to income ratio is only 36% and last i checked that was good too. I'm so confused when it comes to this stuff. I'm wanting a private student loan and now i'm worried i won't get it. I have never missed a payment ever, everything paid on time and in good standing.
moreVoting Question: Will a large student loan affect my ability to get a mortgage....?
I am in the process of applying for a mortgage to purchase a home hopefully next month. I am also finishing school and my senior year starts next month as well--for which I need to take out a rather large student loan to finish up my undergrad (~$20,000) due to some unforseen circumstances. Will this affect my mortgage application?
The mortgage company (when I was applying) asked me all the questions about monthly bills/payments/etc... and they were just concerned about the monthly MINIMUM payment--which I guess is what they used to calculate. BUT...since this new student loan will be deferred, I will not have a monthly payment for two years. Does this matter to the mortgage companies? Is it an issue or a non-issue?
I have roughly $10,000 in another student loan--also deferred until 12 months after I graduate.
Thanks.
To clarify I do have a full-time job making $62K a year, but I am also working on my second undergraduate degree. Long story but not relevant to this posting...just curious as to the impact a deferred student loan payment would have on a mortgage application.
moreResolved Question: is a VA hybrid home loan a good deal?
i know its an ARM loan, but it was explained to me that its based on the amount i owe as compered to borrowed. what this means if that if rates increse, the payment is based on my balance, not the original amount. the inial payment is calculated at financing, after 36 months its calculated at the balace after 36 months and every 12 monthe there after. not your traditional ARM mortgage thats has everyone losing their homes
moreResolved Question: How can I calculate a mortgage payment with principal and interest?
30 year mortgage at 6.50% for a loan amount of $208,000, what would the monthly payment and interest be.
moreResolved Question: year 12 maths question assignment?
1) Barry can obtain a 15 year loan at 7.5 % pa interest. If the most he can afford to pay each month is $1300 what is the largest amount he can borrow?
2) Fiona pays a 30 000 deposit on a property for sale at $130000 and takes out a mortgage for the balance over 15 years at a rate of 8.75% p.au. i) what is the montly instalment for this loan? ii) how much will she repay altogether over the 15 years? iii) how much interest will fiona pay during the 15 years? 6) A clothing boutique has an agreement with bankcard to pay a fee of 2.5% of each purchase made with bankcard. In a particular month the following was charged to the bankcard: $45.80,$123.50,$1005.90,$2397.75,$349.00. a) calculate the total bankcard fee for these purchases. b) what amount does the boutique keep? c) state one advantage for the stores such as this to accept credit cards?
provide working out with the answer to all questions.
7) Mrs Jones recieved her credit card statement for the month of June. The opening balance was 0/00 and purchases amounted to $1469. a) the minimum amount due is 12% of the closing balance or $50 whichever is the larger. What is the mininmum amount due on this statement? b) After having made the minimum payment, the outstanding balance was paid 12 days after the due date. This attracted the following charges: 1.85 % of the amount outsnading plus 0.06082 % of the outstanding amount each day until the account is paid. i) How much interesest was Mrs Jones charged immediately for not paying the account by the due date? ii) Calculate the total amount of interest she had to pay for the 12days the payment was late. 8) Mr and Mrs Clene wish to buy a washing machine marked at $1279 on hire purchase. They pay 10% deposit and are charged interest on the balance at a rate of 22.5% pa. If they take 9months to pay off the machine, calculate: a) the deposit? b) the amount of interest charged?
Question 8 continued:
c) the total amount paid for the washing machine? d) trhe monthly instalments
answer the questions on the additional part aswell
moreResolved Question: Neeed Help With A Problem?
you plan to buy a house in 5 years. the house will cost about $250,000 at that time. On the day you close on the house, you will need 20% of the home's value for a down payment. The Remainder of the house you will finance with a 30 year mortgage at a 5.50% APR with MONTHLY compounding of interest. You must save to make your down payment. You start today by investing $4000 in a mutual fund. The mutual fund will return about 9% APR with quarterly compounding for the next 5 years. Assume there are no other fees or costs associated with the house.
a) To Reach your down payment you will make quarterly contributions to your mutual fund. Your first contribution will be today. What quarterly contribution is required to reach your goal?
b) Calculate the monthly payment on the loan
c) For the life of the loan, calculate the total amount of interest you will pay
d) you decide to make a $20,000 payment directly to the balance after 12th year. how many months will this save you on the mortgage
moreResolved Question: How do I calculate PMI mortgage insurance on an FHA loan?
I'm putting 0 down, so I know the percentage will be a little higher.
more