Payments of the mortgage into interest and principal payment

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You plan to purchase a $130,000 house using a 15-year mortgage obtained from your local bank. The mortgage rate is 5.25 percent. You will make a down payment of 20 percent of the purchase price. a. Calculate your monthly payments on this mortgage 130,000 X .20 = 26,000 Loan amount – 130,000 – 26,000 = 104,000 104,000; interest rate (.525 / 12) 30 years X 12 months = 360 b. Using an Excel Spreadsheet, construct the amortization schedule for the first 12 payments. c. Compute a breakdown of the total payments of the mortgage into interest and principal payment.

Reference no: EM13948778

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