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You have just negotiated a home mortgage with a principal of $350,000. The bank's quoted rate is 7.9%. You chose a 30-year amortization and you
You have just negotiated a home mortgage with a principal of
$350,000.
The bank's quoted rate is
7.9%.
You chose a
30-year
amortization and you decide to make
24
payments per year. Each mortgage payment is
$1,254.48.
How much interest do you pay in the first year? Express your answer as a percentage of the total value of your mortgage payments in the first year.
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