Question for the Money Doctors
Question submitted on Apr 29, 2019.
Question1) If I consider a 27 year mortgage loan for $156,975 at an annual interest rate of 8%. If payments are made yearly, how many dollars of the 18th payment will go toward interest?
2) And if I take out a 30 year mortgage for $172,936 at an annual interest rate of 3.2%. How much do I still owe when there is 1 year left on the loan?
Please give me the formula and answer as well. Thank you
I would not even consider option #1 since the interest rate at 8% is far too high.
Option #2 looks better.
The loan payment is $748.29/month.
Check to see if you can get a lower rate for a 15 year loan. If you can do this over 15 years, the monthly payment is $1,211.33/month.
Not only do you pay it off in 15 years, you also save $51,345 of interest cost.
There are many loan amortization calculators you can find online. Your bank may have one on their website.
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