In: Finance
Consider a 30-year, traditional mortgage on a $200,000 property. With 30% down payment and a 4% APR. Mortgage payments are made monthly. What is the 214th payment?
EMI = Loan Amount / PAVf (r%, n)
PVAF = Sum (PVF(r%, n))
Loan = Purchase Price * ( 1 - Down Payment % )
= $ 200000 * (1 - 0.3)
= $ 200000 * 0.7
= $ 140000
= $ 140,000 / PVAF ( 0.3333%, 360 )
= $ 140000 / 209.4612
= $ 668.38
Loan Amortization:
Month | Opening Bal | Instalment | Int | Principal Repay | Closing Balance |
209 | $ 79,602.54 | $ 668.38 | $ 265.34 | $ 403.04 | $ 79,199.50 |
210 | $ 79,199.50 | $ 668.38 | $ 264.00 | $ 404.38 | $ 78,795.11 |
211 | $ 78,795.11 | $ 668.38 | $ 262.65 | $ 405.73 | $ 78,389.38 |
212 | $ 78,389.38 | $ 668.38 | $ 261.30 | $ 407.08 | $ 77,982.30 |
213 | $ 77,982.30 | $ 668.38 | $ 259.94 | $ 408.44 | $ 77,573.86 |
214 | $ 77,573.86 | $ 668.38 | $ 258.58 | $ 409.80 | $ 77,164.06 |
215 | $ 77,164.06 | $ 668.38 | $ 257.21 | $ 411.17 | $ 76,752.89 |
From Above One, 214th Payment:
EMI = 668.38
Int = 258.58
Principla Repay = 409.80
Outstanding Bal = 77164.06