You decide to purchase a home that costs $140,000. You make a down payment of $20,000 and borrow the rest at a 4.25% 30-year mortgage.
Total Cost = $140,000
Less: Down Payment -$20,000
Mortgage Amount = $120,000
b. Assume that you plan to move after four years. In order to do so, you will need to pay off the remaining balance on your mortgage, which is the present value of your remaining payments. Calculate the payoff value. $111,366.84 4 x 12= 48 (120,000-8,633.16)= $111,366.84
d. What is the amount that goes toward paying off the principal?
e. What is the total amount of interest paid?
show how to get to answer chart list.