Question

What is the principal portion of the required monthly payment on a 30-year, 6.5% rate, $100,000...

What is the principal portion of the required monthly payment on a 30-year, 6.5% rate, $100,000 conventional fixed-rate mortgage that has monthly mortgage payments of $632.07?

  • A. $871
  • B. $632
  • C. $542
  • D. $90
  • E. $0
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Homework Answers

Answer #1

- Loan amount = $100,000

Monthly Mortgage payment = $632.07

- Interest Portion in first Payment = Loan amount*Interest rate*1/12

Interest Portion in first Payment = $100,000*6.5%*1/12

Interest Portion in first Payment = $541.67

Principal Portion in first Payment =Monthly Mortgage payment - Interest Portion in first Payment

Principal Portion in first Payment = $632.07 - $541.67

Principal Portion in first Payment = $90.4

Option D

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