You may remember seeing home mortgage interest rates fluctuate widely in a perio

Question

You may remember seeing home mortgage interest rates fluctuate widely in a period of mot too many years. Refer to me following tables, which compare the amor a on ot a $120,000 30-year ngage or rates or 4 0% and 125% G e me n st m nly payment at nddes more toward principal than toward interest for (a) a 4 0% rate, and (b) a 125% rate (a) The trst monthly payment that inca es more toward pmcpal than toward nterest for an interest rate of 4 0% s payment number (D) The first monthly payment that incudes more toward principal than toward interest for an intenest rate of Enter your answer in each of the answer boxes WE R SD F

Explanation / Answer

(a)

In the Amortization schedule I have computed, the first monthly payment which includes more principle than interest is the 153rd payment.

b)

In the Amortization schedule I have computed, the first monthly payment which includes more principle than interest is the 295th payment.

Interest Paid Principle Paid 286.17 286.73

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