yet another mortgage question

[Guest]

To get some cash to expand his business, Todd took a $120 000 mortgage on his house at 6.25%, amortized over 25 years.

Assuming the interest rate remains constant, how much will Todd pay for the loan?


sry I have alot of similar mortgage questions >.< I jsut havn't learned this b4, so I'm having trouble with these mortgages.

Anna

 

[Denis]

To get some cash to expand his business, Todd took a $120 000 mortgage on his house at 6.25%, amortized over 25 years.
Assuming the interest rate remains constant, how much will Todd pay for the loan?
sry I have alot of similar mortgage questions >.< I jsut havn't learned this b4, so I'm having trouble with these mortgages. Anna

b4 means "before", I take it; please don't do that!

Why can't you get the payment like you did on the other one: from tables?

 

[Guest]

oh ok, well the table is for finding the morgage monthly and then do you multiply the morgage by 300? (25 yrs *12)

Is that how you find the answer?


-Anna

 

[Denis]

YESSSS! As I told you in your other mortgage post:
1: find the damn payment in the tables
2: multiply it by 300
3: subtract 120,000 from that: that leaves the COST; capish?

If you borrow $8 and pay it back in 2 payments of $5,
then it cost you 5*2 = 10 - 8 = 2 bucks, right?

 

[Guest]

yesh, sry I have stupid questions on this stuff, its just that I only learnt this stuff in like umm 15 mins, and then I have a test on it today.