Question
Say you bought a house for $395,000 with 10% down, and financed it from a bank for a 30-year term at 5.25% interest per year
Say you bought a house for $395,000 with 10% down, and financed it from a bank for a 30-year term at 5.25% interest per year compounded monthly. If you make an extra monthly payment of $250 along with the regular payments for the first 10 years, which of the following will be true?
Your total payment will be $2,213 per month for the first 10 years | ||
You will have to make 308 full payments (first 120 of $2,213, and the rest of $1,963) and a partial 309th payment. | ||
Your final payment will be the 309th payment, which will be for $1,737. | ||
All of the above will be true. |
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