Jackie obtains a 60% LTV loan on her new $250,000 home with an annual interest rate of 5.5%. What is the first month’s interest payment?
Accepted Solution
A:
Answer: The first month's interest payment is $1,145.83.
You did not list the length of the mortgage, we will assume the standard 30 year mortgage.
To find amount of interest, you need to look at the amortization schedule of the loan. Just enter the values into any mortgage calculator and you will get the amount of the payment. Then, click on the amortization schedule to see the amount of the interest.