Question

You have just purchased a home and taken out a $440,000 mortgage. The mortgage has a 30 year term with monthly payments and an APR of 5.92%.

How much will you pay in interest, and how much will you pay in principal during the first year?

How much will you pay in interest and how much will you pay in principal during the 20th year?

Answer 1

Amortization for first year

	Beginning Balance= 440000	PMT =PMT(5.92%/12,360,-440000)	Interest part of PMT=5.92%/12*Beginning Principal	Principal part of PMT= PMT-Interest	Ending Balance= Beginning balance-Principal part of PMT
1	$440,000.00	$2,615.43	2170.67	$444.77	$439,555.23
2	$439,555.23	$2,615.43	2168.47	$446.96	$439,108.27
3	$439,108.27	$2,615.43	2166.27	$449.17	$438,659.10
4	$438,659.10	$2,615.43	2164.05	$451.38	$438,207.72
5	$438,207.72	$2,615.43	2161.82	$453.61	$437,754.11
6	$437,754.11	$2,615.43	2159.59	$455.85	$437,298.26
7	$437,298.26	$2,615.43	2157.34	$458.10	$436,840.17
8	$436,840.17	$2,615.43	2155.08	$460.36	$436,379.81
9	$436,379.81	$2,615.43	2152.81	$462.63	$435,917.18
10	$435,917.18	$2,615.43	2150.52	$464.91	$435,452.28
11	$435,452.28	$2,615.43	2148.23	$467.20	$434,985.07
12	$434,985.07	$2,615.43	2145.93	$469.51	$434,515.56

Amortization table for 20th year

229	$253,279.09	$2,615.43	1249.51	$1,365.92	$251,913.17
230	$251,913.17	$2,615.43	1242.77	$1,372.66	$250,540.50
231	$250,540.50	$2,615.43	1236.00	$1,379.43	$249,161.07
232	$249,161.07	$2,615.43	1229.19	$1,386.24	$247,774.83
233	$247,774.83	$2,615.43	1222.36	$1,393.08	$246,381.75
234	$246,381.75	$2,615.43	1215.48	$1,399.95	$244,981.80
235	$244,981.80	$2,615.43	1208.58	$1,406.86	$243,574.94
236	$243,574.94	$2,615.43	1201.64	$1,413.80	$242,161.15
237	$242,161.15	$2,615.43	1194.66	$1,420.77	$240,740.37
238	$240,740.37	$2,615.43	1187.65	$1,427.78	$239,312.59
239	$239,312.59	$2,615.43	1180.61	$1,434.83	$237,877.77
240	$237,877.77	$2,615.43	1173.53	$1,441.90	$236,435.86

Total Interest for 1st year = 25900.78
Total Principal for 1st year = 5484.44

Total Interest for 20th year = 14541.98
Total Principal for 20th year = 16843.23

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