Referencing Styles : Harvard FIN 477 Homework Assignment #2 Due 2/4/15 at the beginning of class. Answer the following questions: 1) What is the Monthly Mortgage Payment for a 30-yr fixed rate mortgage with an interest rate of 4.75%, 1.5 points and $1000 in fees on a home with a value of $300,000 and an LTV of 80%? 2) What is the interest paid, principal paid and balance on the mortgage in question #6 after 10 years? 3) What is the APR if there are no fees or points on the mortgage in question #6 if the mortgage goes the full 30-yr term? 4) What is the APR if the mortgage in question #1 goes the full 30-yr term? 5) What is the APR if the mortgage in question #1 is refinanced after 10 years? 6) You have just bought a home in Ohio for your primary residence valued at $425,000 and your down payment was $85,000. You financed your new home with a 30-yr fixed rate conventional mortgage at 5.25%, with $4000 in fees, which you paid up front. Property Taxes are 120 Mills with 80 Effective Mills. What is your Monthly PITI Payment if you escrow the taxes and insurance? In a short paragraph answer questions 7 & 8. 7) Compare & Contrast the Fixed Rate Mortgage with the Adjustable Rate Mortgage? 8) What is a Reverse Mortgage? Who qualifies and what are the benefits and limitations? 9) What is the Monthly Mortgage Payment for a 30-yr fixed rate mortgage with an interest rate of 4.75%, 1.5 points and $3000 in fees on a home with a value of $300,000 and an LTV of 92%? 10) What is the Monthly Mortgage Payment for a 15-yr fixed rate mortgage with an interest rate of 3.25%, 1 point and $2000 in fees on a home with a value of $200,000 and an LTV of 92%? 11) Evaluate and decide which of the following two mortgages is the best rate including points and fees: a. 30-yr fixed rate mortgage with an interest rate of 4.5%, 1.5 points and $3000 in fees on a home with a value of $300,000 and an LTV of 80% b. 30-yr fixed rate mortgage with an interest rate of 4.25%, 2 points and $4000 in fees on a home with a value of $300,000 and an LTV of 80%? 12) Evaluate and decide which of the following two mortgages is the best rate including points and fees: a. 15-yr fixed rate mortgage with an interest rate of 3.5%, 1.5 points and $3000 in fees on a home with a value of $300,000 and an LTV of 80% b. 15-yr fixed rate mortgage with an interest rate of 3.25%, 2 points and $4000 in fees on a home with a value of $300,000 and an LTV of 80%?