Loan-how much principal was paid during the three years

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Reference no: EM131487659

Loan A

Mortgage: $100,000

Interest Rate: 7^3/4 (monthly payments)

Term: 30 years

1) What is the monthly payment?

2) What is the balance on this mortgage at the end of 3 years (36 months)?

3) How much principal was paid during the 3 years?

4) How much interest was paid during the 3 years?

Our lender is offering an alternative $100,000 loan at 7^1/2% for 30 years with 2 points.

5) What is the effective interest rate on this alternative mortgage if held to maturity?

6) If this alternative mortgage is only held for 3 years (36 months), what is the effective interest rate?

7) If loan A has a prepayment penalty of 3% and the loan is paid off in 3 years (36 months), what is the effective interest rate?

8) If loan A has a 2 point fee and a 3% prepayment penalty, and if the loan is paid off in 3 years (36 months), what is the effective interest rate?

Reference no: EM131487659

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