You are going to purchase a new house valued at $250,000 by making the down payment of 20% and borrowing the rest as a 30-year fixed rate mortgage of 5.25%. Solve the problem by creating an Excel spreadsheet
1-What will be your monthly payment to pay back the loan? What is the total interest that you will pay over the life of the loan?
2-How much total interest you would pay on this loan if you can prepay $30,000 on the first month of the second year?
This question belongs to finance and discusses about calculating monthly loan payment for a house valued $250,000.
Word count: Excel format
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