Calculate the amount of interest and, separately, principal paid on each mortgage. what is the difference in interest paid? b. calculates your monthly payments on the two mortgages. what is the difference in the monthly payment on the two mortgages are:
1.=370000*(1-20%) *(7.25%/12)/(1-1/(1+7.25%/12)^(12*15))*12*15-370000*(1-20%) =190373.343
2.=370000*(1-20%)*(8.25%/12)/(1-1/(1+8.25%/12)^(12*25))*12*25-370000*(1-20%)=404143.7196
3.=370000*(1-20%)*(8.25%/12)/(1-1/(1+8.25%/12)^(12*25))*12*25-370000*(1-20%)-(370000*(1-20%)*(7.25%/12)/(1-1/(1+7.25%/12)^(12*15))*12*15-370000*(1-20%))=213770.3766
4.=370000*(1-20%)*(7.25%/12)/(1-1/(1+7.25%/12)^(12*15))=2702.074128
5.=370000*(1-20%)*(8.25%/12)/(1-1/(1+8.25%/12)^(12*25))=2333.812399
6.=370000*(1-20%)*(7.25%/12)/(1-1/(1+7.25%/12)^(12*15))-370000*(1-20%)*(8.25%/12)/(1-1/(1+8.25%/12)^(12*25))=368.2617292
A loan price is commonly made of 4 components: principal, interest, taxes and insurance. The principal component is the quantity that can pay down your superb mortgage amount. Interest is the price of borrowing cash.
A loan is a settlement among you and a lender that offers the lender the proper to take your house in case you fail to pay off the cash you have borrowed plus interest. Mortgage loans are used to shop for a domestic or to borrow cash in opposition to the cost of a domestic you already own.
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