What is your monthly payment

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Question - You bought a house with price of $250,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%. Assuming the total transaction cost is $10,000.

-What is your loan amount? What is your monthly payment? What will be the loan balance at the end of nine years?

-What is the effective borrowing cost if the loan will be prepaid at the end of nine years?

-In the monthly payment, how much you pay for the principle and how much you pay for the interest in the 1st and the 2nd month?

-What will be your interest payments for the first 5 years (year 1 to year 5) and the last 5 years (year 26 to year 30)?

-What is your annual percentage rate (APR)?

Reference no: EM132978738

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