Mortgage Calc: Calculate Payment, Owed & Interest Breakdown

In summary, the conversation is about a person needing help with a review question for a missed class. The question involves a home priced at $1,000,000 with a $60,000 cash down payment and a mortgage with a closed 5-year term and 25-year amortization at an interest rate of 2.75%. The person also asks about the monthly payment with a 3.10% mortgage insurance premium, the remaining balance after 5 years, and the percentage of interest and principal in each payment. The person is directed to a website for examples and formulas to calculate mortgage payments.
  • #1
penelopedelmar
1
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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?
 
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  • #2

1. How do I use the mortgage calculator to calculate my monthly payment?

To use the mortgage calculator, you will need to input the loan amount, interest rate, and loan term. The calculator will then calculate your monthly payment based on these values.

2. Can I use the mortgage calculator to determine how much I still owe on my mortgage?

Yes, the mortgage calculator can also calculate the remaining balance on your mortgage. You will need to input the loan amount, interest rate, loan term, and the number of payments you have already made.

3. Will the mortgage calculator show me a breakdown of the interest and principal in my monthly payments?

Yes, the mortgage calculator will provide a detailed breakdown of each monthly payment, including the amount of interest and principal being paid.

4. Can the mortgage calculator factor in additional payments or extra principal payments?

Yes, the mortgage calculator has the option to include additional payments or extra principal payments. This can help you see how these payments can impact your overall mortgage balance and interest paid.

5. Is the mortgage calculator accurate for all types of mortgages?

The mortgage calculator is accurate for most traditional mortgages. However, it may not be accurate for more complex mortgage types, such as adjustable-rate mortgages or interest-only mortgages. It is always best to consult with a financial advisor for more specific calculations.

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