You are financing a new home. The loan is for $173,000 and you are getting rate...

You are financing a new home. The loan is for $173,000 and you are getting rate of 3.8% per year compounded monthly. You have decided on a 15 year mortgage and will make monthly payments (end of the month). To get the ball rollng, you are working extra hours and expect to pay an extra $300 per month to knock down the principle. You make these payments for 3 years starting on month 1. The last payment is on month 36.

Build the amortization table. What month will you make your last payment? How much will the last payment be?

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Expert Solution

Therefore, in the last month 34.64 amount needs to be paid in the 167th month.

EMI is calculated in EXCEL as below:

=PMT(3.8%/12,15*12,-173000)

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Rahul Sunny answered 1 year ago

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