Question: 1. You wish to purchase a property for $600,000 and need to acquire a mortgage to finance $500,000 of the purchase price. A bank offers you a $500,000 fixed rate 30 year fully amortizing constant payment mortgage with a 3.5% rate. In which period (e.g. which payment number, 1--360) is the first month in which you are paying more principal than interest on this loan?
2. You wish to purchase a property for $600,000 and need to acquire a mortgage to finance $500,000 of the purchase price. A bank offers you a $500,000 fixed rate 30 year fully amortizing constant payment mortgage with a 5.25% rate. In which period (e.g. which payment number, 1--360) is the last month in which you are paying more interest than principal on this loan?
3. You wish to purchase a property for $600,000 and need to acquire a mortgage to finance $500,000 of the purchase price. However, you wish to have a maximum monthly payment of $2,500 A bank offers you a $500,000 fixed rate partially amortizing 10 year constant payment mortgage with a 4% rate. If you accept this loan and hold it to maturity, what is the balloon payment that will be due at the end of 10 years? State your answer as a positive number rounded to the nearest cent.