Question

A 25-Year Convention Mortgage. Mr. & Mrs. Alan Bell obtain a 25-year, $110,000 conventional mortgage at 10.5% on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $1038.60. They also pay 2 points at closing.

a) Determine the total amount the Bells will pay for their house.




b) How much of the cost will be interest(including the two points)?




c) How much of the first payment on the mortgage is applied to the principal?

Answer 1

a,b,c are three separate answers

Answer 2

Recollect the formula for monthly instalment

Actual price of the house is $160,000
But, the loan amount the Bells pair taken= $110,000
st

So, the answer for (c) is $50,000. This is the 1 amount...

Answer 3

you basically subtract the numbers

Answer 4

@juana02 do you understand this?

Answer 5

what is the actual price for house?

Answer 6

ok i see it

Answer 7

what is the total amount she will pay for the house?

Answer 8

and first payment applied to principal?

Answer 9

ahh! i went put of order ok so lets start with A do you know where to start?

Answer 10

with the actual price of the house?

Answer 11

yeah

Answer 12

any ideas? im talking about part A

Answer 13

yes im on it its confusing the wording

Answer 14

hmm... i see what you mean it is a bit confusing :/ im not sure about it maybe @YanaSidlinskiy or @Nnesha and @AnswerMyQuestions know?

Answer 15

for c their monthly mortgage payment, including principal and interest, is $1038.60.

Answer 16

and the question for c is How much of the first payment on the mortgage is applied to the principal?