Question: On June 1 , you borrowed $ 3 5 0 , 0 0 0 to buy a house. The mortgage interest rate is 3 .

On June 1, you borrowed $350,000 to buy a house. The mortgage interest rate is 3.5%. The loan is to be repaid in equal monthly payments over 30 years. QUESTION #1. What is your monthly payment ? ANSWER: ?? QUESTION #2. How much equity will you have in the house after 5 years? ANSWER: ?? QUESTION #3. How much interest have you paid during year 6 only? ANSWER: ?? QUESTION #4. How much interest will you be paying over the whole course of the loan? ANSWER: ?? QUESTION #5. If you paid extra 200 more monthly, how long would it take to pay off your mortgage completely? ANSWER: ?? QUESTION #6. If you paid extra 200 more monthly, how much can you save in interest payments compared to the original loan schedule? ANSWER: ??

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