A young couple buys their dream house. After paying their down payment and closing costs, the couple
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A young couple buys their dream house. After paying their down payment and closing costs, the couple has borrowed $426,206 from the bank. The terms of the mortgage are 30 years of monthly payments at an APR 7% with monthly compounding. Suppose the couple wants to pay off their mortgage early, and will make extra payments to accomplish this goal. Specifically, the couple will pay an EXTRA $2,000 every 12 months (this extra amount is in ADDITION to the regular scheduled mortgage payment). The first extra $2,000 will be paid after month 12. What will be the balance of the loan after the first year of the mortgage?
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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