Question
When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 5 % per year. The annual payment on
When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 5 % per year. The annual payment on the mortgage is $ 17 comma 573. You have just made a payment and have now decided to pay the mortgage off by repaying the outstanding balance. a. What is the payoff amount if you have lived in the house for 18 years (so there are 12 years left on the mortgage)? b. What is the payoff amount if you have lived in the house for 21 years (so there are 9 years left on the mortgage)? c. What is the payoff amount if you have lived in the house for 18 years (so there are 12 years left on the mortgage) and you decide to pay off the mortgage immediately before the 18 th payment is due?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started