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answer this question in EXCEL . Show me how to do this You purchase a house that costs $625,000 with a 8%, 30-year mortgage. In
answer this question in EXCEL . Show me how to do this
You purchase a house that costs $625,000 with a 8%, 30-year mortgage. In order to avoid PMI insurance, you decide to follow a conforming mortgage by making a down payment of 20%.
- What is your monthly payment?
- Amortize the first and second payments.
- What is the mortgage balance after 5 years?
- What percentage of the principal is paid off after 5 years?
- Suppose after 5 years you refinance at 6% the remaining balance at a cost of $10,000, for 30
- years. What is your new monthly payment?
- Further, suppose you maintain the same payments as in (1), i.e. pre-pay on the principal, how
- many YEARS until you pay off the mortgage?
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