In: Finance
How much of the third mortgage payment will go to pay down the principle?
Home Price: $339,000 USD
15% down payment of selling price
25 year term loan with a 3% annual interest rate
Ans $ 8384.65
Loan = | Cost- Downpayment | ||||
339000 - 15%*339000 | |||||
288150 | |||||
P = | Regular Payments | ||||
PV = | Loan Amount | ||||
r = | rate of interest | ||||
n = | no of periods | ||||
P = | r (PV) | ||||
1 - (1 + r )-n | |||||
P = | 3% * 288150 | ||||
1 - (1 / (1 + 3%)^25)) | |||||
P = | 8644.5 | ||||
0.522394431 | |||||
P = | 16547.841040 | ||||
Total Amount paid for loan = | EMI * NO of EMI | ||||
16547.841040 * 25 | |||||
413696.03 | |||||
Interest = | Total Amount paid for Loan - Loan amount | ||||
413696.03 - 288150 | |||||
125546.03 | |||||
Beginning Balance | Interest | Principal | Ending Balance | ||
1 | $288,150.00 | $8,644.50 | $7,903.34 | $280,246.66 | |
2 | $280,246.66 | $8,407.40 | $8,140.44 | $272,106.22 | |
3 | $272,106.22 | $8,163.19 | $8,384.65 | $263,721.56 | |