Question
In: Finance
You want to buy a $1,000,000 house. Suppose you make a20% down payment today, and you...
You want to buy a $1,000,000 house. Suppose you make a20% down payment today, and you finance the rest of your purchase with a 30‐year fixed rate jumbo mortgage of 4.00%.
- What will be your monthly mortgage payments?
- How much of your first month’s payment goes toward paying off interest? How much goes toward paying off the loan balance?
- How much do you still owe after 5 years (i.e., just after your 60th monthly payment)?
- How long will it take you to reduce your loan balance by half (i.e., ≤$400,000)?
- Suppose in 20 years (just after your 240th monthly payment), you decide to refinance at a 10‐year fixed rate of 3.200%. What will be your new monthly mortgage payments?
Solutions
jeff jeffy answered 4 months agoRelated Solutions
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(b) Repeat the above assuming a mortgage term of 25 years.
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