Whats the amount of this home equity loan

Assignment Help Financial Management

Reference no: EM13732284

A person purchased a house 20 years ago for $270,000 by paying 20% down and signing a 30-year mortgage at 9.45% compounded monthly. The current appraised value of the house is $390,000. If a bank will loan this person 95% of the equity in the house, what's the amount of this home equity loan?

Reference no: EM13732284

Questions Cloud

Arbitrage transactions costs involving futures contract : Assume that the 3-month futures contract on SPX settled at 2070, r = 0.25%, q = 2.25%, arbitrage transactions costs (TC) involving these futures contract are 1.16 (index points). The TC band is [2060.84, 2058.52]. Therefore, the index (SPX) must have..

Calculate the present value of the gas promotion : Car dealers are trying a number of promotional methods to induce car sales. One dealer offers a year’s supply of free gas to any consumer who buys a car during the month of July. Calculate the present value of the gas promotion

Example of diversifiable risk : Which one of the following is an example of diversifiable risk?

What are the interest only payments and the payments : A couple buys a house for $140,000. They pay 15% down and sign a 30 year mortgage at 5.2% compounded monthly. The first 5 years of this mortgage is an interest only loan where the payments are the interest on the principal. After 5 years, the princip..

Whats the amount of this home equity loan : A person purchased a house 20 years ago for $270,000 by paying 20% down and signing a 30-year mortgage at 9.45% compounded monthly. The current appraised value of the house is $390,000. If a bank will loan this person 95% of the equity in the house, ..

Find to the nearest cent his credit card balance six months : Bob has $15,000 in credit card debt at 18% annual interest compounded monthly. If he makes no more purchases with the card, and pays $190 on this card at the end of each month, find to the nearest cent his credit card balance six months from now.

Debt ratio and equity ratio : Suppose the debt ratio for a company is 45%. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given? suppose the Debt over equity ratio (D/E) for a company is 1.6. Th..

Capital investment proposals : The division managers of Chester Construction Corporation submit capital investment proposals each year for evaluation at the corporate level. Typically, the total dollar amount requested by the divisional managers far exceeds the company’s capital i..

What is the APR and EAR of your investment : You bought a stock four months ago for $74.32 per share. The stock paid no dividends. The current share price is $76.84. What is the APR and EAR of your investment? (Do not round intermediate calculations. Enter your answers as a percentage rounded t..

User Account

All Pages