You want to buy a $1,000,000 house. Suppose you make a20% down payment today, and you...

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Finance

You want to buy a $1,000,000 house.Suppose you make a20% down payment today, and you finance the restof your purchase with a 30?year fixed rate jumbo mortgage of4.00%.

What will be your monthly mortgagepayments?

How much of your first month’s payment goes towardpaying   off interest? How much  goestoward paying off the loan balance?

How much do you still owe after 5 years (i.e., just after your60^th monthly payment)?

How long will it take you to reduce your loan  balance by half (i.e., ?$400,000)?

Suppose in 20 years (just afteryour  240^th monthly payment), you decide torefinance at a 10?year fixed rate of 3.200%. What will be your newmonthly  mortgage payments?

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You want to buy a $1,000,000 house.Suppose you make a20% down payment today, and you finance the restof your purchase with a 30?year fixed rate jumbo mortgage of4.00%. What will be your monthly mortgagepayments? How much of your first month’s payment goes towardpaying off interest? How much goestoward paying off the loan balance? How much do you still owe after 5 years (i.e., just after your60th monthly payment)? How long will it take you to reduce your loan balance by half (i.e., ?$400,000)? Suppose in 20 years (just afteryour 240th monthly payment), you decide torefinance at a 10?year fixed rate of 3.200%. What will be your newmonthly mortgage payments?