Question
For the first loan payment, how much money will go towards interest and how much money will go towards the outstanding balance? Is my answer
For the first loan payment, how much money will go towards interest and how much money will go towards the outstanding balance?
Is my answer for this correct^?
So assuming that I am buying a $450,000 home and put in a %20 down payment of $90,0 00 then I would have a total mortgage of $360,000. Now assuming it is compounded monthly and a 30-year mortgage with an annual interest rate of %3.5 then I would have monthly payments of approximately $1616.56. Furthermore, over the 30 years of monthly payments, I would pay approximately $581961.92 which is $221961.92 of interest from the original $360,000 outstanding balance. This would mean with my first monthly payment approximately $616.56 will go to the accumulated interest and approximately $1000 to the original outstanding balance.
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