After making payments of $919.10 for 6 years on your 30-year loan at 8.5%, you decide...
After making payments of $919.10 for 6 years on your 30-year loan at 8.5%, you decide to sell your home. What is the loan payoff?
Homework Answers
As it is not mentioned the amount of payment is monthly or yearly
considering monthly payments
Amount of monthly payment = $919.10
Number of monthly period = 30*12 = 360
Payment are made for 6 years i.e. 6*12 = 72 monthly periods
Monthly period left = 360-72 = 288
Interest rate = 8.5% compounded monthly
loan amount left = (919.10/(0.085/12))*[1-(1+(0.085/12))(-288)]
loan amount left = 129755.29*[0.8690]
loan amount left = $112761.61
Initial Loan Amount = (919.10/(0.085/12))*[1-(1+(0.085/12))(-360)]
Initial Loan Amount = 129755.29*[0.9212] = $119532.29
Initial Loan Amount at year 6 = $119532.29(1+0.085/12)72 = $198698.53
Loan amount paid = $198698.53-112761.61 = $85936.92
198698.53
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