Question
A homeowner obtains a $500,000.00 loan at an interest rate of 6-1/8% based on a 30 year amortization schedule. What is the monthly payment? What
A homeowner obtains a $500,000.00 loan at an interest rate of 6-1/8% based on a 30 year amortization schedule.
- What is the monthly payment?
- What is the total amount of interest that would be paid over the life of the loan?
Assume that after the 48th payment, the homeowner pays an additional $200.00 per month.
- At what month would the loan be paid in full?
- How many years sooner would the loan be paid off, versus just making regular monthly payments?
- How much interest would the homeowner save paying off the loan quicker than over the original term?
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Technology And Finance Challenges For Financial Markets Business Strategies And Policy Makers
Authors: Morten Balling, Frank Lierman, Andy Mullineux
1st Edition
041529827X, 978-0415298278
