Example Closed mortgage with prepayment privileges Home Down payment 25,000 Conventional mortgage = 100,000 3 years term 8% per annum Amortization period of 25 years price = 125,000 Closed mortgage with payment privileges: 1-once each year extra payment of 10% of the original borrowed amount and it cannot be carried forward to the following years 2- once each calendar year can increase the amount of regular installment of principal and interest, can not exceed 100% of the installment payment. A- What is the amount of the regular payment Weekly, semi monthly, monthly? B- Determine the balance after three years C-In year 2 the payment increased by 50%, in year three 100% increases What is the balance of the mortgage at the time of renewal? Example Closed mortgage with prepayment privileges Home Down payment 25,000 Conventional mortgage = 100,000 3 years term 8% per annum Amortization period of 25 years price = 125,000 Closed mortgage with payment privileges: 1-once each year extra payment of 10% of the original borrowed amount and it cannot be carried forward to the following years 2- once each calendar year can increase the amount of regular installment of principal and interest, can not exceed 100% of the installment payment. A- What is the amount of the regular payment Weekly, semi monthly, monthly? B- Determine the balance after three years C-In year 2 the payment increased by 50%, in year three 100% increases What is the balance of the mortgage at the time of renewal