My clients Cosmo and Wanda are considering buying a Mansion, and they have successfully negotiated the price down to $275,000. They plan on making a down payment of 20% and financing the remainder using a fully amortizing, 30-year, monthly payment mortgage with a fixed interest rate of 5.25%.

1a) What is their required monthly payment for principal and interest?

1b) Assuming they make 12 monthly payments in the first year of ownership and they can itemize deductions, how much of their monthly payment would be tax deductible (not including real estate taxes)?

1c) What would be the loan balance be after 5 years assuming all payments were paid on time?

Answer rating: 100% (QA)

Absolutely I can help Cosmo and Wanda figure out their mortgage payments and loan balance Lets solve this stepbystep 1a Monthly Payment for Principal ... View the full answer