1. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What will be Ann’s mortgage balance after 20 years of payments (ie after 240 months)?
2. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Ann’s 20th payment goes to interest?
3. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Ann’s 20th payment goes to principal?
4. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.Assuming Ann makes payments for 30 years, what is Ann’s annualized IRR from mortgage A?