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Find ratio of equity to amount paid as interest

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Reference no: EM132641751

House price $333,00030 year fixed with 3.226% APRMonthly payment : $1444.85

a) How much is still owed after 1 year (12 months)? How much interest has gone to the bank as interest in the first year? How much equity has been gained after 12 payments? (i.e. How much of the loan has been paid off after one year.) How much equity has been earned in five years? To answer the equity questions just subtract the amount still owed (after a year or five years) from the initial amount. The ratio of equity to amount paid as interest in the first year is quite staggering. This ratio improves over time.

b) In what month does more of the payment go towards principal than to interest?

c) In what month is the loan half-paid?

Reference no: EM132641751

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