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Suppose you take out a 30 year mortgage for $ 250000 at 7.75% interest. The monthly payments on this loan are $ 1791.03. If you
Suppose you take out a 30 year mortgage for $ 250000 at 7.75% interest. The monthly payments on this loan are $ 1791.03.
If you pay an extra 20% per month on your mortgage, how soon will you pay off the loan? New length in years = 18.0 years
How much will you save in interest by making the extra payments? Saving = $180535.824
If you put $ 1791.03 per month into an annuity earning 10.5% interest compounded monthly for the remaining time on your original loan, how much money will you have at the end of the original 30 years? Extra savings = ?
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