Shannon and her family just bought a house in the beautiful city of Denver for $500,000.

She worked with a mortgage broker and agreed to take on a mortgage loan with the following terms:

• 10% down payment
• 15-year fixed-rate loan at 4.5%

Could you help Shannon figure out the monthly mortgage payment and put together the amortization schedule?   

2.1 What is the monthly mortgage payment?

2.2 Construct a loan amortization table. How much would be the payment toward principle in the second month?

2.3 Shannon plans to pay the monthly mortgage payment as calculated in question (a) for 10 years and then pay a lump sum amount at the end of year 10 to pay off the mortgage. How much would be the balloon payment that she needs to pay at the end of year 10?

     

Answer rating: 100% (QA)

Q21 Monthly payment 344247 as follows Q22 Amortization schedu... View the full answer