Loan Payment Assignment | Homework For You


1. Suppose that 15 years ago you bought a home for $500,000, paying 20% as a down payment, and financing the rest at 5% interest for 30 years. How much money did you pay as your down payment?

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2. [2 points] How much money was your existing mortgage (loan) for?

3. [2 points] What is your current monthly payment on your existing mortgage? Note: Carry at least 4 decimal places during calculations, but round your final answer to the nearest cent.

4. [2 points] How much total interest will you pay over the life of the existing loan?

5. [2 points] This year (15 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $271,536 left to pay on your loan. Your house is now valued at $650,000. How much of the original loan have you paid off? (i.e, how much have you reduced the loan balance by?

6. [2 points] How much money have you paid to the loan company so far (over the last 15 years)?

7. [2 points] How much interest have you paid so far (over the last 15 years)?

8. [2 points] How much equity do you have in your home (equity is value minus remaining debt)?

9. [2 points] Since interest rates have dropped, you consider refinancing your mortgage at a lower 3% rate. If you took out a new 30 year mortgage at 3% for your remaining loan balance, what would your new monthly payments be?Get Finance homework help today