Reference no: EM132622792
The Bells obtain a? 25-year, $110,000 conventional mortgage at a? 10.5% rate on a house selling for? $160,000. Their monthly mortgage? payment, including principal and? interest, is? $1038.60. They also pay 2 points at closing.
?a. Determine the total amount the Bells will pay for their house.
The total amount the Bells will pay is: ?$363,780
?b. How much of the cost will be interest? (including the 2? points)?
$313,780 of the cost will be interest.
?c. How much of the first payment on the mortgage is applied to the? principal?
?$___ of the first payment is applied to the interest.
?$___ of the first payment is applied to the principal.
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