John and Peggy recently bought a house. They financed the house with a $150,000, 30-year mortgage...

John and Peggy recently bought a house. They financed the house with a $150,000, 30-year mortgage with a nominal interest rate of 6.68%. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first 4 years will go towards repayment of principal?

Expert Solution

$ 7,181.45

Step-1:Calculation of monthly payment

Monthly Payment	=-pmt(rate,nper,pv,fv)
	= $ 965.93

Where,
rate	=	Monthly Interest rate	=	6.68%/12	=	0.005566667
nper	=	Number of period	=	30*12	=	360
pv	=	Initial cash flow		=	$ 1,50,000
fv	=	Future cash flow		=	0


Step-2:Calculation of loan value at the end of 4 years

Loan value at the end of 4 years	=pv(rate,nper,pmt,fv)
	= $ 1,42,818.55

Where,
rate	=	Monthly Interest rate	=	6.68%/12	=	0.005566667
nper	=	Number of period	=	(30-4)*12	=	312
pmt	=	Monthly cash flow		=	$ -965.93
fv	=	Future cash flow		=	0

Step-3:Calculation of principal repayment over 4 years

Principal repayment over 4 years	=	Loan value at the beginning	-	Loan value at the end of 4 years
	=	$ 1,50,000.00	-	$ 1,42,818.55
	=	$ 7,181.45

jeff jeffy answered 1 year ago

28) John and Peggy recently bought a house. They financed the house with a $229,000, 30-year...

28) John and Peggy recently bought a house. They financed the house with a $229,000, 30-year mortgage with a nominal interest rate of 6.63%. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first 4 years will go towards repayment of principal? $66,025.39 $59,359.34 $10,106.84 $11,059.99 $14,249.02

28. John and Peggy recently bought a house. They financed the house with a $278,000, 30-year...

28. John and Peggy recently bought a house. They financed the house with a $278,000, 30-year mortgage with a nominal interest rate of 9.04%. Mortgage payments are made at the end of each month. What total dollar amount of their mortgage payments during the first 4 years will go towards repayment of principal?

1. Peggy and John Schultz bought the house of their dreams seven years ago. The price...

1. Peggy and John Schultz bought the house of their dreams seven years ago. The price was $475,000, though they negotiated it down to a more agreeable $449,500. They paid 20% of that in cash, as a down payment and financed the rest using a 25-year, 4.15% mortgage. Peggy was doing bills the other day and decided to figure out just how much their monthly payment was and how much interest they had paid thus far. She also wants to...

You bought a house for $150,000 and put down 10% and got a mortgage at an...

You bought a house for $150,000 and put down 10% and got a mortgage at an interest rate of 4.35 % per year. You would pay it back by paying an equal amount at the end of each month for 15 years? (Show all work) How much is your loan amount? How much is your monthly loan payment? How much is your loan balance after 2 years? How much is your total interest payment by the end of year 3?

You have financed a house with a 30-year, monthly payable mortgage in the amount of $400,000...

You have financed a house with a 30-year, monthly payable mortgage in the amount of $400,000 at a fixed rate of 8% per year compounded monthly. a. What are your monthly mortgage payments? b. How much of the first month’s payment is accounted for by interest on your loan? c. To help pay off the mortgage early, you pay an extra $2000 with the 1st payment. How many payments will you need to make to pay off the remainder of...

Jackie bought a $200,000 house and has a 30 year mortgage at anominal interest rate...

Jackie bought a $200,000 house and has a 30 year mortgage at a nominal interest rate of 4.8% convertible monthly. Jackie must pay level payments at the end of each month. Find the amount of her monthly mortgage payment. After 200 payments have been made, what is the ratio of total interest paid to total principal repaid?

Wally has just bought a house by taking a 30-year, $127,500 mortgage from the bank. The...

Wally has just bought a house by taking a 30-year, $127,500 mortgage from the bank. The interest rate is 8.25%. The mortgage is to be retired by payments made every month starting next month. How much does Wally have to pay each month to repay the mortgage? What would the monthly payments be if Wally opts for a 15-year mortgage at the same interest rate?

Bubba bought his house 20 years ago, he is borrowed $200,000 with a 30-year mortgage with...

Bubba bought his house 20 years ago, he is borrowed $200,000 with a 30-year mortgage with a 5.0% APR. His mortgage broker has offered him a 10-year mortgage with a 4% APR with 3 points closing costs. What is Charlie's old monthly payment? What is the balance on Bubba's mortgage? What is Bubba's new monthly payment? What are Bubba's present value savings after paying the points if he plans to live in the house until the mortgage is paid off?

Suppose John takes a 15 year mortgage loan of $150,000 at 4.8% (12). a. What is...

Suppose John takes a 15 year mortgage loan of $150,000 at 4.8% (12). a. What is the monthly payment? b. If he wants to pay off the loan after 10 years, (i.e., on the 120th payment), what is the payoff amount?

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage...

Amortize a 30-year mortgage for a $200,000 house cost with a 20% down payment. The mortgage interest rate is 4.125%. How much is the monthly payment? How much will the borrower pay in total interest?

Question