Patrick is purchasing a new home and needs to borrow $250,000 from a mortgage lender. The mortgage lender quotes him a rate of 6.25% APR for a 30--year fixed rate mortgage.
1 What will his monthly payment be?
2 Five years after purchase, he receives a job offer in another state and plans to sell his home. What is the remaining principal balance on his mortgage?
3 If he makes the first payment of the sixth year of the mortgage, what portion of this payment is principal?