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How much of the third mortgage payment will go to pay down the principle? Home Price: $339,000...

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Finance

How much of the third mortgage payment will go to pay down theprinciple?

Home Price: $339,000 USD

15% down payment of selling price

25 year term loan with a 3% annual interest rate

Answer & Explanation Solved by verified expert
4.5 Ratings (1064 Votes)

Ans $ 8384.65

Loan = Cost- Downpayment
339000 - 15%*339000
288150
P = Regular Payments
PV = Loan Amount
r = rate of interest
n = no of periods
P = r (PV)
1 - (1 + r )-n
P = 3% * 288150
1 - (1 / (1 + 3%)^25))
P = 8644.5
0.522394431
P = 16547.841040
Total Amount paid for loan = EMI * NO of EMI
16547.841040 * 25
413696.03
Interest = Total Amount paid for Loan - Loan amount
413696.03 - 288150
125546.03
Beginning Balance Interest Principal Ending Balance
1 $288,150.00 $8,644.50 $7,903.34 $280,246.66
2 $280,246.66 $8,407.40 $8,140.44 $272,106.22
3 $272,106.22 $8,163.19 $8,384.65 $263,721.56

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