A mortgage pool is worth $10 million. Each mortgage has interest rate of 6%, term of 30 years and monthly payments based on full amortization. Mortgage servicing fee is an annual 1.2% of the mortgage balance charged on monthly basis as a percentage of the mortgage balance at the beginning of the month. What is the value marked by X?

Month	Beginning Balance	Required Payment	Interest	Principal	Expected Prepayment	Servicing Fee	Ending Balance
1	10,000,000	59,955	50,000		15,000
2			49,875		30,000	X	9,935,055

Answer rating: 100% (QA)

To solve for X we need to calculate the interest principal prepayment and servicing fee for Month 2 ... View the full answer