FINANCE-She currently owes $131,600 on an original $136,193 15-year FRM loan

She currently owes $131,600 on an original $136,193 15-year FRM loan that she originated 2years ago at 4.375%. Unlike earlier assignments, you are responsible to use your ownknowledge of Excel to build spreadsheets to answer each of the questions listed below. Inorder to help facilitate grading, please download the Excel file listed on Blackboard and placeyour answers to the listed questions in the space provided on the first worksheet of that file.Questions:1. Your aunt has already received several loan quotes from different banks. Determine themonthly payment and effective borrowing cost for each loan below by creating a separateworksheet for each $131,600 loan given she prepays after 8 years (96 months):a. 30-year FRM loan at 3.624% with $2,367 in origination feesb. 30-year FRM loan at 3.75% with $1,617 in origination feesc. 15-year FRM loan at 2.88% with $1,859 in orig. fees and a 2% prepayment penaltyapplied towards any principal repaid beyond that is scheduled.d. 30-year 5/1 Hybrid ARM with an initial interest rate of 2.75% and $2,193 inorigination fees. After the 60th payment, you assume the interest rate willimmediately increase to 6.75% for the remaining payments.2. Each lender has offered to ‘roll-in’ any origination fees to the loan’s principal, but requiresthe loan-to-value (LTV) to be less than or equal to 80% at origination. Calculate the requiredappraised value of the property assuming she does and does not “roll-in” the origination feesfor each loan option.3. What is the net present value (NPV) of the refinance decision if she chooses loan Option B,prepays after 8 years, does not roll-in fees, and has a monthly discount rate of 0.1%?4. Your aunt currently earns $64,000 per year and pays $741 and $259 per year in propertytaxes and hazard insurance, respectively. Given that the lender requires that her monthlydebt-to-income ratio must be less than 45%, what is maximum size of loan she can obtain ifshe chooses loan option A?

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Type of paper needed:

Pages:

Academic level:

Total price:

$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.