Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You buy a $200,000 house and have a 20% down payment (hence the mortgage is for $160,000). A 15 year mortgage has a rate of

You buy a $200,000 house and have a 20% down payment (hence the mortgage is for $160,000). A 15 year mortgage has a rate of 3.5% and 0 points. The monthly mortgage payment is $1,143.81.

How much (give the dollar amount) of the first months mortgage payment pays off principal on the mortgage? To answer, first compute how much of the first months payment is used to pay interest. Then, the remainder of the mortgage payment is used to pay down the principal. (You may find the Excel discussion of a mortgage amortization helpful for answering this question)

Enter your answer for the principal payment in the first month below to the nearest cent. Do NOT include a dollar sign in you answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Healthcare Finance An Introduction To Accounting And Financial Management

Authors: Louis C. Gapenski

4th Edition

1567932800, 978-1567932805

More Books

Students also viewed these Finance questions

Question

=+What is our leadership style like?

Answered: 1 week ago

Question

=+What are our core competencies or competitive advantages?

Answered: 1 week ago