What is your new monthly payment if you decide to refinance
What is your new monthly payment if you decide to refinance Question 1Note: The information presented here applies to questions 1, 2, 3, and 4.Ten years ago, you borrowed $450,000 using a 30-year fixed payment mortgage offering a 6% interest rate. Current mortgage rates are now 5.5%. You can refinance your existing mortgage by taking out a new 15-year loan offer a 5.5% rate. The new loan requires that you pay $1500 in origination fees, but house prices have increased enough since your purchase to allow you to include these fees in the amount you borrow in the new loan. What is the amount your will borrow if you decide to refinance?Question 2What is your new monthly payment if you decide to refinance?Question 3If you hold the new loan until its maturity, what is the return that you expect to receive by refinancing?Question 4If you are currently earning a 10% return on your investments, you should definitely refinance.TrueFalseQuestion 5Note: The information presented here applies to questions 5 through 7 You and your significant other are thinking about buying a one-bedroom apartment in Greenpoint. Your combined income is $150,000 a year and, between your savings and help from family, have enough to make a 20% down payment on any property that you are likely to be able to afford. To qualify for a conventional 30-year fixed-rate mortgage with a 4% rate, the amount you can borrow is limited by two constraints. The first requires that the sum of the scheduled mortgage payment, monthly common fees, and property taxes must be less than 30% of your gross monthly income. If the common fees and property taxes are $750 a month, what is the maximum loan amount that you can obtain based on this constraint?Question 6The second constraint requires that the sum of the scheduled mortgage payment, monthly common fees, property taxes, and monthly non-housing debt service must be less than 35% of your gross monthly income. At this time, your monthly student loan payments total $425 and you have a minimum payments on your credit cards totaling $100. Based on this constraint, what is the maximum loan amount that you can obtain?Question 7If the loan requires a down payment equal to 20% of the purchase price, what is the most that you can afford to pay for an apartment?Question 8Note: The information presented here applies to questions 8 through 12 You are thinking about purchasing a small office building in Queens. The property contains 10,000 square fee of rentable space and is currently occupied by a single tenant with three years remaining on their lease. If the annual rent in the first year of your tenure as owner $30 per square foot and expenses are estimated to be 45% of effective gross income, what is the net operating income generated by the property in the first year of ownership?Question 9A lender offers to provide a mortgage to finance part of the acquisition of the property in the form of a 5-year interest-only loan with a 6.25% rate. What is the most the lender is willing to provide if they require a minimum debt coverage ratio equal to 1.2?Question 10The asking price for the property is $3,000,000 and the lender permits a maximum loan-to-value ratio of 70%, what is the most you can borrow by this criterion?Question 11If the lender requires both a minimum debt coverage ratio of 1.2 and a maximum LTV ratio of .70, what is the maximum amount you are qualified to borrow?Question 12If you decide to purchase the property for the asking price, what is the corresponding capitalization rate?