penelopedelmar
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Hi I need help with this review question for a class I missed.
A home you want to purchase is priced at $1,000,000. You have $60,000 available for a cash down payment. You borrow the remainder through a mortgage with a closed 5-year term and 25-year amortization at an interest rate of 2.75% compounded semi-annually.
1. What is the monthly payment with a 3.10% mortgage insurance premium?
2. How much will you owe at the end of 5-year term?
3. What percentage of the total 60 payments will be interest and what fraction will have gone towards paying down principal?
A home you want to purchase is priced at $1,000,000. You have $60,000 available for a cash down payment. You borrow the remainder through a mortgage with a closed 5-year term and 25-year amortization at an interest rate of 2.75% compounded semi-annually.
1. What is the monthly payment with a 3.10% mortgage insurance premium?
2. How much will you owe at the end of 5-year term?
3. What percentage of the total 60 payments will be interest and what fraction will have gone towards paying down principal?
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