You are about to purchase a new house for $400,000 You plan on making a down payment of 20 percent of the value of the house and taking out a mortgage for the remaining balance. A bank has offered you a 30-year mortgage at 8.00 percent APR compounded semiannually.

a) How much is your monthly payment?

b) How much will you still owe on your mortgage after five years?

c) Suppose you changed your mind and decided to repay your original mortgage by making weekly payments (i.e., 52 payments per year). How much is your weekly payment?

Answer rating: 100% (QA)

To calculate the monthly payment remaining balance after five years and weekly payment for the mortgage we need to use the loan amount interest rate a... View the full answer