Five (5) Years Ago, You Bought a House for $171,000, with a Down Payment of $30,000, Which Meant You Took Out a Loan for $141,000. Your Interest Rate Was 5.75% Fixed. You Would Like to Pay More on Your Loan. You Check

In: Other Topics

Submitted By sam07
Words 278
Pages 2
Five (5) years ago, you bought a house for $171,000, with a down payment of $30,000, which meant you took out a loan for $141,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information:

Escrow payment

$261.13

Principle and Interest payment

$822.84

Total Payment

$1,083.97

Current Loan Balance

$130,794.68

Write a one to two (1-2) page paper in which you address the following: Part 1 With your current loan, explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25. Decide whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over. •(a) Explain your strategy for solving the problem. •(b) Present a step-by-step solution of the problem. •(c) Clearly state your answer to Part 1. What is your decision?

Part 2 Identify the highest interest rate you could refinance at in order to pay the current balance off in 20 years and determine the interest rate, to the nearest quarter point, that would require a monthly total payment that is less than your current total payment. The interest rate that you qualify for will depend, in part, on your credit rating. Also, refinancing costs you $2,000 up front in closing costs. •(a) Explain your strategy for solving the problem. •(b) Present a step-by-step solution of the problem. •(c) Clearly state your answer to Part 2. What is your…...

Similar Documents

Your Use of Language Sends Out Lots of Little Messages, Not Only Just About Your Level of Education and Where You Come from, but How You Would Like to Be Perceived.

...-----------Essay l0lz get it? (mehican gangster) Your use of language sends out lots of little messages, not only just about your level of education and where you come from, but how you would like to be perceived. The use of language one uses sends out messages of how the speaker wants to be perceived by others or to the speaker him/herself. People can rapidly change their language depending on situation and context, in the public eye one will choose their language to create an identity or sell a point of view toward how they would like to be perceived. Language can be a determiner of your level of education or a locational marker but these ‘common traits’ are usually quite generalized and will change depending whether an individual is trying to achieve an overt or covert prestige within a group or greater public. Many Australians who have come from overseas speak in an ethnolect; the variety of English these people speak that promotes maintaining or increasing social distance and stresses common bonds, experiences and knowledge between the speakers. It is a way for these migrants to keep their accent and embrace their culture because this is how they would like to be perceived by their cultural groups and how the migrant themself wants to be perceived. A good example of this is the ethnolect variety “wogspeak” (term coined by Jane Warren) which is spoken mainly by ethnic groups of Lebanese and European. Jane Warren states that “Language plays an essential role in......

Words: 1041 - Pages: 5

How You Will Measure Your Life

...GOVERNANCE AND SUSTAINABILITY – PAPER July 2013 Cédric Chaumont International MBA 5 Governance and Sustainability - Paper INSTRUCTIONS Based on article "How will you measure your life?" (Christensen, 2010), answer questions below. Paper description: 4-6 pages Development: Individual Delivery: Via International MBA student web site Deadline: July, 29th Questions: 1. 2. 3. How can I be sure that I’ll be happy in my career? How can I be sure that my relationships with my spouse and my family become an enduring source of happiness? How can I be sure I’ll stay out of jail? Cédric Chaumont_FT5 2/7 Governance and Sustainability - Paper 1 How can I be sure that I’ll be happy in my career? According to Prof. Christensen , “the powerful motivator in our lives is not money; it’s the opportunity to 1 learn, grow in responsibilities, contribute to others, and be recognized for achievements.” I totally agree with Prof. Christensen; it is important to keep in mind that finding happiness in my career has nothing to do with money and everything to do with the opportunity to learn, grow in responsibilities, contribute to others, and be recognized for achievements. As he explained as well, “Management is the most noble of professions if it’s practiced well. No other occupation offers as many ways to help others learn and grow, take responsibility and be recognized for achievement, and contribute to the success of a team.” If I want to maximize my......

Words: 2724 - Pages: 11

Mortgage Payments and Interest Rates

...Five (5) years ago, you bought a house for $171,000, with a down payment of $30,000, which meant you took out a loan for $141,000. Your interest rate was 5.75% fixed. You would like to pay more on your loan. You check your bank statement and find the following information: Escrow payment $261.13 Principle and Interest payment $822.84 Total Payment $1,083.97 Current Loan Balance $130,794.68 Part 1 With your current loan, explain how much additional money you would need to add to your monthly payment to pay off your loan in 20 years instead of 25. Decide whether or not it would be reasonable to do this if you currently meet your monthly expenses with less than $100 left over. •(a) Explain your strategy for solving the problem.  •(b) Present a step-by-step solution of the problem.  •(c) Clearly state your answer to Part 1. What is your decision?  Part 2 Identify the highest interest rate you could refinance at in order to pay the current balance off in 20 years and determine the interest rate, to the nearest quarter point, that would require a monthly total payment that is less than your current total payment. The interest rate that you qualify for will depend, in part, on your credit rating. Also, refinancing costs you $2,000 up front in closing costs. •(a) Explain your strategy for solving the problem.  •(b) Present a step-by-step solution of the problem.  •(c) Clearly state your answer to Part 2. What is your decision?...

Words: 264 - Pages: 2

You Are Mine & I'M Yours

...as a neophyte writer on your site. Please do bear with me my dear readers. I am be very, very much sorry for my grammatical errors, punctuation errors and spelling errors I have no more time to proofread because the second semester is fastly and highly approaching. Sorry if it's kinda boring this is the real state of the characters and the real flow of the story. Honestly, this is a true to life story excluded after 5 yrs after. I hope I can gain more comments on this first mechanical story of mine. Your positive and negative comments are highly and very much appreciated. I wish I could earn more readers, friends and great-minded analyst in the field of writing to criticize my work, make some corrections and leave some tips to improve my way of writing. By the way, this is "myballpen" the original author and the female lead character of the story. Hope you'll like it. Once gain, don't forget to leave your comments.Thank you. You Are Mine and I’m Yours Lead Characters: Jheanne Nockingston Jerrad Bosh Supporting Actress/ Actors: Jacciene Sue - Clark Jorraine Lautner - Hongo Jarylle Qeue – Laurito Arbie Clark Jaymar Laurito Chassy Ford - Diesel Man / Vince Tucker Woman / Jocelle Famstord - Tucker Child / Josephine / Sophie Tucker At the school… It was the opening of Willis University, academic year 2013-2014. While the world was busy, there was this girl named Jheanne , 4th year education student, who keep her more than 3 year feelings towards this......

Words: 8068 - Pages: 33

You Decide to Buy This House. Assuming the Bank Can Loan You a 30-Year Mortgage at the Yearly Interest Rate of Current Prime Rate + 3%, How Much Are Your Monthly Payments (Show All Calcuations?)

...future Instructor Graded Assignments you will be asked to use the answers you found in the Unit 1 Assignment. Note: For these questions you need to cite a reliable source for information, which means you cannot use sites like Wikipedia, Ask.com®, and Yahoo® answers. If you do use those sites the instructor may award 0 points for your response. The Assignment problems must have the work shown at all times. The steps for solving the problems must be explained. Failure to do so could result in your submission being given a 0. If you have any questions about how much work to show, please contact your instructor. Assignments must be submitted as a Microsoft Word® document and uploaded to the Dropbox for Unit 8. Please type all answers directly in this Assignment below the question it applies to. All Assignments are due by Tuesday at 11:59 PM ET of the assigned Unit. Note: All interest rates are to be assumed to be yearly interest rates. For this assignment you will need the prime interest rate, as posted in the Wall Street Journal®. Use the internet to search for the current prime interest rate. * List the current prime interest rate:____3.25%___________ Question 1 (15 points) 1. Using the internet, research and find a house listing that you would not mind living in. Any house will work, but it must be selling for more than $10,000. a) Post a link to your house listing. You can also cut and paste a .jpeg file of your listing. ......

Words: 710 - Pages: 3

About 2 Months Ago, You Implemented a Network Monitoring Solution. You Decided to Check the Logs as a Result of a Call You Received from Your Cio. the President of the College Was on an Important Phone Call and Was Not

...commercial benefit, which will help in the improvement of video coverage and reduction of loss of lives in battles. The manufacture strategies will ensure that the device is efficient, flexible, and efficient. This ensures that the device is authentic and adaptive to battle grounds where few journalists dare report. • Company Information The company is a technological firm developed that prides in being in the fore front is using creativity and innovation in technology to design products that are crucial at tackling notable problems in the society. Therefore, it is a problem-driven company that always seeks and come up with great solutions for the technological problems. Therefore, the idea of developing a remote controlled camera came after identifying a problem in which journalists risk their lives trying to capture information and videos at battle grounds. These journalists often place their lives at stake when they make this decision. This is because the kind of information that can be captured in these settings can be of great interest to many people and thus it can lift the reporting status of the journalist. With the lives of these journalists in mind and following the availability of technology within the disposal of the company, the idea popped up. • Growth Highlights The company is likely to grow at a rate of 14 percent per annum for the next three years because it aims at the production of effective products, which will be......

Words: 1308 - Pages: 6

Would You Sell Your Town for a Beer Ad?

...taking over the town for a three day Bud Light party for what started out to be for $250k has now turned into half a million dollars. This is a difficult decision to make for these small seasonal towns that make all of their money during the tourist season and then struggle the rest of the year to make ends meet. When Mayor Huckstep, of Crested Butte, Colorado approved the event, it was a tough decision. With the help of other members of the community, he felt it best for the economy of the small town. Many of the small town folk are in an uproar of how this will change their small, close knit community. That they will lose their quiet, quaint atmosphere. Anheuser-Busch plans to fly in 1,000 young adults and they have already painted the streets, light posts and many other things blue to publicize the Bud Light event. I believe this is a great strategy to boost the economy of these small seasonal towns to generate an income. This event will bring in lots of jobs for the town people which they really need during their slow season. Not to mention the half a million dollars Anheuser-Busch is calling a “donation”. Large companies like Anheuser-Busch will continue to advertise and produce commercials and I like that they are giving the opportunity to small seasonal towns in need of the revenue. Would you sell your town for a beer ad? Turkewitz, Julie. “Town Becomes a Beer Ad, but Residents Don’t Feel Like a Party” New York Times, 4 Sept. 2014. Web ......

Words: 822 - Pages: 4

Is Keeping Your 401k(K) Costing You Your Retirement

...What is your version of the American Dream? If you’re like millions of other Americans, you’re probably living for the day your 401(k) has stored enough equity for you to enjoy a life of financial freedom. But what if everything you've been led to believe about your 401(k) retirement plan is not only untrue, but just the opposite of what you have been told? Wouldn’t you want to know immediately while there was still time to capture the American Dream? Those nearing retirement are extremely concerned, and rightly so, that a collapse of the stock market could spell possible disaster for their 401(k) and other retirement investments. The credit crunch and housing meltdown of 2007-08 are stark reminders of the dot.com debacle of 200002 that halved market values, forcing retirement for many to be postponed or scaled down in quality. Many lost their retirement, jobs, homes and lifetime savings. The information contained in this publication may well be the most important information that you have read and could affect the quality of your planned retirement for years and/or the rest of your life. In addition to learning important retirement information, you will learn the 7 S.E.C.R.E.T.S. of the Super Wealthy, how to remove your money tax-free from your company’s 401(k) plan and place it under your own control without stopping work or dropping out of your employer’s plan, and how to keep more in your estate while passing more to your family members or other designated heirs by......

Words: 4466 - Pages: 18

Would You Hire Your Husband

...Would You Hire Your Husband? There are significant pros and cons to hiring your husband to work in your business. If it’s you and him against the world, and your success is his success and you are working toward common goals, share challenges, triumphs and the revenues and grow as a couple as you grow the business then it is a plus side. On a very practical level, having your husband in your employ can make managing household considerations more flexible. You may be able to schedule one of you to work from home. You’ll be able to allow each other extra work time on weekends, or extra home time on weekdays, with mutual and greater understanding of the need for it. When your husband works for you, you don’t have to worry about whether his boss will understand a family commitment, or whether his wife will understand a professional one. Over the years, this kind of flexibility can really add to your quality of life. On other hand, If your marriage breaks up, he could take a lot of the business in a divorce. If your husband was employed by you or your company, or contributed in any way to its success, he’ll be entitled to a significant percentage. The greater his involvement in your business, the bigger that percentage will be. Hiring your husband gives him access to important company information, such as trade secrets, costs, suppliers, customers, etc. Naturally, no one blinks an eye about this kind of information sharing while you’re allies. But if you divorce, look out.......

Words: 314 - Pages: 2

Tma2 Personal Finance, You and Your Money

...TMA 2 – Part A: Question 1: 1. 1700x12=£20400 16827/12=£1402.25 1700/100=17x2=34+1700=£1734 1734x12=£20808 17104/12=£1425.33 1402.25x6=£8413.50 1425.33x6=£8551.98+£8413.50=£16965.48/12=£1413.79. Piper’s average net monthly income over one year would be £1413.79. 2. Net income Average month £ per month. Earnings: 1413.79 Total net income: 1413.79 Rent 700.00 Council tax 91.67 Utility bills 73.34 Food 433.34 Leisure and gifts 70.00 Transport 86.67 Total Expenditure: 1455.02 Surplus/deficit: -41.23 Currently she wouldn’t be able to purchase her laptop as she has a deficit of £41.23 per......

Words: 1968 - Pages: 8

What Would You Change in Your Country?

...Have you ever dreamt about the improvement of life in your country? Undoubtedly, our appetites are unlimited. People always want more. There is hardly a person in the world who is completely satisfied with economic, cultural or political situation in her country. Sometimes these dreams have a solid background and reasons, because it is impossible to build a perfect society on the territory of a chosen country. Everyone dislikes something about his native country and wants to change these disadvantages. As I speak about myself, I would rather say that I have a few ideas about this issue. I would change several things that exist in every country. When we speak about education in the USA, the UK, India or Russia, we would say that education is not a strong side of any country. People have not managed to create the ideal system of education that would help children develop their potential. In spite of the fact that such countries as the USA, the UK, Australia, Germany or France have solid material basis for education, the quality of education is still low. Very often students from the developing countries are able to compete with the US student who has graduated from the most expensive college or university. However, the material and financial background of his country is poor. Consequently, the problem is not money but the right approach towards children and education in general. I would like to make education affordable for everyone, because the level of literacy is still...

Words: 550 - Pages: 3

Should You Listen to Your Customer

...EXPERIENCE hbr.org Case Study Suraj Srinivasan is an associate professor at Harvard Business School. Terranola was everyone’s favorite company until an investor went on the attack. by Suraj Srinivasan The Experts A Short-Seller Crashes the Party Guy Gresham, managing director, BNY Mellon Illustration: Maria Raymondsdotter Dan Mahoney, director of research, CFRA HBR’s fictionalized case studies present dilemmas faced by leaders in real companies and offer solutions from experts. This one draws on the HBS Case Study “Trouble Brewing for Green Mountain Coffee Roasters” (case no. 113035), by Suraj Srinivasan and Michael Norris, which is available at hbr.org. W hen the well-known hedge fund manager and short-seller Jeremiah Hughes first put Terranola in the spotlight, issuing ominous warnings about unsold products, a looming patent expiration, and flawed growth projections, the considered judgment of the company’s executive team was to do nothing. “I refuse to dignify this attack with a response,” said Henry Guillart, the CEO, after Hughes gave his negative presentation at an investor conference in New York. That decision turned out to have serious consequences. Terranola’s stock began tanking that afternoon, precipitating a slide that took the Seattle-based company’s reputation, employee morale, and ability to raise capital along with it. A month later, when Hughes spoke again about the company, everyone expected......

Words: 2188 - Pages: 9

Teach You Stuff

... Additional Praise for Ramit Sethi and I Will Teach You to Be Rich “Ramit Sethi is a rising star in the world of personal finance writing. . . one singularly attuned to the sensibilities of his generation. . . . His style is part frat boy and part Silicon Valley geek, with a little bit of San Francisco hipster thrown in.” —SAN FRANCISCO CHRONICLE “The easiest way to get rich is to inherit. This is the second best way—knowledge and some discipline. If you’re bold enough to do the right thing, Ramit will show you how. Highly recommended.” —SETH GODIN, AUTHOR OF TRIBES “You’ve probably never bought a book on personal finance, but this one could be the best $13.95 you ever spent. It’ll pay for itself by the end of Chapter 1 (check out the box on page 24 to see what I mean).” —PENELOPE TRUNK, AUTHOR OF BRAZEN CAREERIST: THE NEW RULES FOR SUCCESS “Most students never learn the basics of money management and get caught up in the white noise and hype generated by the personal-finance media. Ramit’s like the guy you wish you knew in college who would sit down with you over a beer and fill you in on what you really need to know about money—no sales pitch, just good advice.” —CHRISTOPHER STEVENSON, CREDIT UNION EXECUTIVES SOCIETY “Smart, bold, and practical. ......

Words: 92352 - Pages: 370

International Financial Management - What Is All That You Would Like to Tell the Top Management so as to Establish Your Credibility What Will You Do Next How Will You Present Your Analysis

...International Financial Management 1. What is all that you would like to tell the top management so as to establish your credibility? 2. What will you do next? How will you present your analysis? 3. Should your company make this investment? If yes, then which will be the best route to (a) maximization of profits, (b) minimizing risk, (c) finding the optional mix of profits and risk. What all information to you need to arrive at these answers? How will you structure your analysis? 4. How will you proceed to structure this situation? What all information will be needed? What is your perception of the risks involved in the proposed structure? 5. How will you guide your CEO in this situation? 6. What are the choices available with you to meet these cashflow requirements? Analyze each possibility in detail and argue for and against each of them. 7. What will you do? How you will protect your interest in this situation? 8. 1. A young financial analyst in Canadian firm has been assigned the task of evaluating a direct investment project in Mexico. She has worked out the operating cash flows of the project for the next 7 years For finding the NPV of the project she proposes the following four alternatives: (a) Discount the nominal MEP (Mexican Peso) cash flows using the Mexican nominal interest rate used for similar projects and translate into CAD using the current MEP/CAD spot rate. (b) Discount the real i.e.......

Words: 453 - Pages: 2

Someone Like You

...( Word Converter - Unregistered ) http://www.word-pdf-converter.com Life is an ugly, awful place not to have a best friend. Halley and Scarlett have been best friends ever since they met. Halley has always been the quiet one; Scarlett braver and more outgoing. Halley has always turned to Scarlett when things get rough, and Scarlett has always known just what to do. It's the perfect setup. But everything changes at the beginning of their junior year. Scarlett's boyfriend is killed in a motorcycle accident; then she finds out that she is carrying his baby. For the first time ever, Scarlett really needs Halley. Now Halley has to learn how to be strong for Scarlett. It won't be easy, but Halley knows that she can't let Scarlett down. Because a true friend is a promise you keep forever. ( Word Converter - Unregistered ) http://www.word-pdf-converter.com ( Word Converter - Unregistered ) http://www.word-pdf-converter.com Best friends. "Scarlett?" I said, there in the dark, and as she turned to me I saw her face was streaked with tears. For a minute, I didn't know what to do. I thought again of that picture tucked in her mirror, of her and Michael just weeks ago, the water so bright and shiny behind them. And I thought of what she had done all the millions of times I'd cried to her, collapsing at even the slightest wounding of my heart or pride. So I reached over and pulled her to me, wrapping my arms around her, and held my best friend close, returning so many favors...

Words: 71268 - Pages: 286