chap 10 c - The larger the mortgage amount, the larger the...

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Financial Planning Online: Applying For a Mortgage Go to: http://www.mortgageloan.com/refinance-mortgage This Web site provides information on refinancing loans and a mortgage calculator Characteristics of a Fixed-Rate Mortgage Fixed-rate mortgage: a mortgage in which a fixed interest rate is specified until maturity Preferred when interest rates are expected to rise May be assumable under some conditions Financial Planning Online: Average Mortgage Rates Go to: http://finance.yahoo.com/loans This Web site provides national averages for mortgage rates, as well as average mortgage rates for specific regions and states Characteristics of a Fixed-Rate Mortgage (cont’d) Amortization table Basis for monthly mortgage payment amount for a fixed-rate mortgage Allocation of the mortgage payment—each payment represents a partial payment of principal and a partial payment of interest Characteristics of a Fixed-Rate Mortgage (cont’d) Impact of the mortgage amount on the monthly payment
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Unformatted text preview: The larger the mortgage amount, the larger the mortgage payment Impact of the interest rate on the monthly payment The larger the interest rate, the larger the mortgage payment Impact of the mortgage maturity on the monthly payment The longer the maturity, the lower the monthly payment The longer the maturity, the more interest you pay over the live of the loan Characteristics of a Fixed-Rate Mortgage (contd) Impact of the mortgage amount on the monthly payment The larger the mortgage amount, the larger the mortgage payment Impact of the interest rate on the monthly payment The larger the interest rate, the larger the mortgage payment Impact of the mortgage maturity on the monthly payment The longer the maturity, the lower the monthly payment The longer the maturity, the more interest you pay over the live of the loan...
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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