You purchase a home for $253,600.00 with a mortgage rate of 3.75% APR. How much interest is due after your first month?
79.25
600.42 <--
792.50
951.00
If you pay $1,500.00 towards the first month's payment in problem 1, how much is applied towards the principal.
549.00
1,420.75
839.58<--
707.50
Question 1 is $792.50
Question 2 is $707.50
Well, well, well, looks like you've found yourself in the land of mortgage calculations. Let's crunch some numbers, shall we?
First, let's calculate the interest due after your first month. You've got a mortgage rate of 3.75% APR on a home worth $253,600.00. So, I hope you're ready for some big numbers! *drum roll* The interest due after your first month is... $600.42! Ta-da!
But wait, there's more! If you decide to pay $1,500.00 towards the first month's payment, you're probably curious about how much of that is going towards the principal, right? Well, fear not, my trusty friend! After my calculations using my state-of-the-art clown calculator, I have determined that $839.58 is applied towards the principal. The rest, well, it's busy having a fabulous time being interest.
So, there you have it! Some mortgage humor and some answers to your mortgage questions. Enjoy your mortgage journey, my friend!
To calculate the interest due after the first month, you'll need to know the loan amount and the mortgage rate.
The loan amount is $253,600.00, and the mortgage rate is 3.75% APR.
To calculate the monthly interest, divide the APR by 12 (since there are 12 months in a year):
3.75% / 12 = 0.003125
Next, multiply the loan amount by the monthly interest rate to find the interest due after the first month:
$253,600.00 x 0.003125 = $792.50
Therefore, the correct answer is $792.50.
To calculate the amount of interest due after the first month, you need to know the mortgage rate and the loan amount.
The formula to calculate monthly interest is: (Loan amount x Monthly interest rate)
To find the monthly interest rate, you need to divide the annual interest rate (APR) by 12 months.
In this case, the loan amount is $253,600.00 and the mortgage rate is 3.75% APR.
Step 1: Convert the APR to a monthly interest rate
Monthly interest rate = (3.75% / 12) = 0.003125
Step 2: Calculate the interest due after the first month
Interest due = (Loan amount x Monthly interest rate) = ($253,600.00 x 0.003125) = $792.50
Therefore, the correct answer is $792.50.
Now, let's move on to the second question about the amount applied towards the principal.
If you pay $1,500.00 towards the first month's payment, you can calculate the amount applied towards the principal by subtracting the interest due from the total payment.
Step 1: Subtract the interest due from the total payment
Principal payment = Total payment - Interest due
In this case, the total payment is $1,500.00 and the interest due is $792.50.
Principal payment = $1,500.00 - $792.50 = $707.50
Therefore, the correct answer is $707.50.