Question

The Hamilton’s house is valued at $390,000. The mortgage was for $347,100 with a 5-year term, amortized over 25 years at 3.4%.

Please Calculate the Monthly Mortgage Payment:

They have made 20 payments on the mortgage. Please calculate the balance owing on the loan.

Answer 1

Mortgage Value = $347,100

Calculating the Monthly mortgage amount:-

Where, P = Loan amount = $347,100

r = Periodic Interest rate = 3.4%/12 = 0.28333%

n= no of periods = 25 years*12 = 300

Monthly Payment = $1719.10

- Calculating the Oustanding loan balance after 20 payments:-

Where, P = Loan amount = $347,100

r = Periodic Interest rate = 3.4%/12 = 0.28333%

n= no of periods = 25 years*12 = 300

m = no of periods of payment = 20

Oustanding Balance after 20 payments = $331,984.07

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