Colinda has just purchased her first home for $125,000. She put down a 20 percent down payment of $25,000 and took out a 4 percent mortgage for the rest. Her mortgage payment is $477 per month. How much of her first monthly mortgage payment is amortization?
Accepted Solution
A:
Answer: $333 Interest and $144 Principal
To find the values for this payment, you will need to use an amortization calculator. If you were not given one, there are numerous ones online.
Simply enter the amount of the loan $100,000. Then, the number of years, 30 is standard. Finally, enter the percent.
It will show you that the total payment is $477 and also the break down of the payment as given in the answer.