What is the breakdown between principal and interest

Reference no: EM131427052

Assume that a homeowner takes on a 30-year, $100,000 floating-rate mortgage with monthly payments. Assume that the floating rate is 7.0 percent at the initiation of the mortgage, 7.125 percent is the reset rate at the end of the first month, and 7.25 percent is the reset rate at the end of the second month. What are the first, second, and third mortgage payments, respectively, made at the end of the first, second, and third months? What is the breakdown between principal and interest for each of the first three payments? What is the principal balance at the end of the first, second, and third months?

Reference no: EM131427052

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