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You purchased a home 6 years ago using a 4% 30-year mortgage with a monthly payment...

You purchased a home 6 years ago using a 4% 30-year mortgage with a monthly payment of $1072.25. Assuming you want to pay off your mortgage today, how much would you have to pay the lender in order to pay off the outstanding balance on your mortgage loan? Round to the nearest dollar.

Solutions

Expert Solution

Using financial calculator
Input:

N = (30-6)*12 = 288

I/Y = 4/12 = 0.3333

PMT = -1072.25

Solve for PV as 198,311.14

Amount to be paid back = $198,311

jeff jeffy answered 2 years ago
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