Mortgage question

Question

Instead of a 30 year mortgage, you decide to look into a 15 year mortgage. You still put 20% down on the $259,000 house. The bank decides for a 15 year mortgage at 5.0% interest, your monthly payment would be $1638.53. Let's investigate the questions we answered earlier, but using the 15 year mortage. Round all answers to two decimal places, where necessary.

When you make the very first monthly payment, how much of the payment will be applied to the interest accrued on the house?

Whatever is left over will be applied to the actual amount you borrowed (the principal). How much will be applied to the principal?

If you make all the payments for 15 years, how much money will you have paid for your home? (Don't forget to include the down payment)

Wow! That's A LOT more than the sale price of the home. How much of this amount (the answer from the previous question) is interest?

Answer 1

yu must be politishun...yu rite stuf so nowon kan get NE klue wot yu tri tu sae. It sound like yu get a 259,000$ morgage (yu borro munee). Papers sae yu pae off lone in 15 yeers & yu pae 5% (interest) me plug yuer numbers intu standard morgage math & get Paement=2,048.16$/month $ yu pae=368,667.60 $ yu pae 109,667.60 $interest on yer lone

Answer 2

Assuming compound interest charged monthly, the monthly rate is 5/12% per month=5/1200=1/240. 20% of $259,000 is $51,800, so the amount borrowed is $207,200. In 1 month the interest is 207200/240=$863.33. This is the amount of the monthly payment that is used to pay off interest, leaving $775.20 reduction on the principal. So about 52.69% of the first monthly payment is used to pay off that month's interest.

12 payments a year at $1638.53 a month for 15 years is 12*15=180 payments=180*1638.53=$294,935.40 plus down payment=$346,735.40.