How much of the third mortgage payment will go to pay down the principle? Home Price:...

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

Expert Solution

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

jeff jeffy answered 6 months ago

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