what is the payoff amount of a 30 year $255,413 mortgage at 6% interest with a payment of $1,321.33 with 8 years remaining?
To calculate the payoff amount of a mortgage, you need to determine the remaining balance on the loan. Here's how you can find the remaining balance for your given mortgage:
1. Convert the interest rate from an annual to a monthly rate: Divide the annual interest rate (6%) by 12 (number of months in a year). So, the monthly interest rate is 6% / 12 = 0.005.
2. Calculate the number of remaining payments: In this case, there are 8 years remaining on a 30-year mortgage. Multiply 8 by 12 (months in a year) to get the total number of remaining payments: 8 * 12 = 96 payments.
3. Use the formula to calculate the remaining balance: The remaining balance (B) can be calculated using the monthly payment (P), the monthly interest rate (r), and the number of remaining payments (n) with the formula:
B = P * ((1 + r)^n - 1) / r
Plugging in the given values:
P = $1,321.33
r = 0.005 (monthly interest rate)
n = 96 (number of remaining payments)
B = $1,321.33 * ((1 + 0.005)^96 - 1) / 0.005
Using this formula, you can calculate the remaining balance which represents the payoff amount of the mortgage.