Reverse Mortgage

Rych asked:


You need a $325,000 mortgage for your new luxury 600 square foot condo. You have chosen a 20 year amortization
period with monthly payments for the loan. You are tempted by the very low 1 Year Fixed Rate Mortgage but are concerned about inflation and worried that rates may increase by the beginning of the second year.

1 year Fixed Rate Mortgage: APR (compounded semiannually) 2.75%
5 year Fixed Rate Mortgage: APR (compounded semiannually) 4.30%

katy asked:


The seller will carry financing at 7.5% interest on a 20 year amortization on a 2 year balloon. The property is being offered CFD with 10% down. Is this a good deal – I’m not sure…
The problem is that I can’t get a loan right now due to my credit score. Is a 2 year balloon like a 2 year rent to own contract?

Juice asked:


Which of the following items are listed in the header of an amortization table?

True False – amortization payment
True False – interest
True False – principal at end of period
True False – present value
True False – payment number
True False – payment applied to principal
True False – lump sum payment
True False – number of compounding periods
True False – nominal interest rate

thanks
i tried the whole google search… but it;s useless… the wordings are really different =(

dawgfan016 asked:


I am making an amortization schedule with excel that shows the payments per month and need to make property taxes and insurance increase automatically every year (month 13, 25, 37, etc). I have been told that it can be done with the INT function but I cannot figure it out. Any ideas?

Joe S asked:


can someone help me out with this, its been so long since ive done it and havent got a clue… heres the transaction:

Amortization is calculated on the capital assets using the following methods and useful lives:

building, straight-line, 25 years, $15000 residual value
equipment, single declining-balance, 5 years, $2000 residual value
Patent, straight-line, 20 years, no residual value

heres the accounts:
Building – $105000
Building Accumulated Amortization – $10800
Equipment – $25000
Equipment Accumulated Amortization – $12200
Patent (net of $11250 accumulated amortization) – $ 63750

the accounts for the journal entries are amortization expense debit, accumulated amortization and patent credit, right? i just have no idea how to find these numbers…

Jessica asked:


Given:
Accumulated amortization building CR 19,500

The building is being amortized over 20 years with a residual value of $20,000.

what is the adjusted journal entry?

umpman2003 asked:


I’m trying to figure out how to calculate a monthly payment for a $150,000 loan with a 5.5% interest rate that is monthly. The loan is 30 years (360 months). What do I do? I understand what amortization is, it’s just confusing to calculate.

Carl G asked:


Where can I find a amortization chart, or a formula for my calculator to take to the dealership if I have to use their financing (I have a 5 year old bankruptcy)

They will rip you when they start asking what you want your monthly payment to be – for me it is the interest rate and amount of time for the loan. I need to be able to calculate this stuff based on interest rates they will give me – there at the dealership. so I wont have my computer to do calculations automatically.

new_mommy asked:


I’m from the Philippines and I want to understand the mechanics of a housing loan which is quite diff in the US. I have a 15 yr loan with a bank but my salary is quite enough to cover the monthly amortization if I restructure it to 5 years. Should I restructure or just maintain the 15 yrs and then save money and pay off some of the principal every yr? I’m on my 3rd yr of payment now and I feel that it’s taking so slow! I need some advice. Also, what fees should I take into consideration if in case I do restructure?

Terri asked:


The Centennial Chemical Corporation announced that for the period ending March 31, 2008, it had earned income after taxes worth $5,330,275 on revenues of $13,144,680. The company’s costs (excluding depreciation and amortization) amounted to 61 percent of sales, and it had interest expenses of $392,168. What is the firm’s depreciation and amortization expense if its tax rate is 34 percent?