Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT?

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a.The remaining balance after three years will be $ 125,000 less one third of the interest paid during the first three years.
b.Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant.
c.Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant.
d.The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
e.The outstanding balance declines at a slower rate in the later years of the loan’s life.

The loan started at 250k. How much would it be to pay off my loan in full at this point?

  1. Reply
    January 27, 2011 at 7:28 pm

    b is the only correct statement in your list

  2. Reply
    January 27, 2011 at 8:18 pm

    only b

  3. Reply
    January 27, 2011 at 8:48 pm

    B is wrong! a fixed rate mortgage means the interest rate is fixed that doesn’t mean that the monthly payments are fixed.

  4. Reply
    January 27, 2011 at 8:59 pm


  5. Reply
    cool dude
    January 27, 2011 at 9:47 pm

    do your own math homework! thats how u learn

  6. Reply
    Nnnnn Ggggg
    January 27, 2011 at 10:38 pm

    Totally depends on how much of your payment was for your insurance, excrow account, principal, any fees you may have to pay for paying early… No one can answer this. Contact your mortgage company and ask for a payoff quote.

  7. Reply
    January 27, 2011 at 10:55 pm

    If you call your lender, they will give you that information. In fact, you can probably get it on a recording if you choose the account information when the answering service comes on.

  8. Reply
    Steve D
    January 27, 2011 at 11:43 pm

    Using the mortgage calculator with amortization schedule and based solely on the data you provide, I show a remaining balance of approximately $ 194,500 – note that this is only an approximation, as you don’t provide any data on roll-ins, discount points, etc. If you call your lender, they will be able to provide a more accurate, up-to-date figure.

  9. Reply
    the tramp
    January 27, 2011 at 11:45 pm

    do your own homework

  10. Reply
    January 28, 2011 at 12:14 am

    In order tyo get an exact payoff, you will need to call your mortgage company. Interest accures daily, so the amount will depend on the day you request. Now, 6.75% on a loan is very high in today’s market. You could save quite a bit of money refinancing this loan to 4.5% or slightly higher on non-conforming loans. Do your homework. I refinanced my home and now save $ 270.00 monthly.

  11. Reply
    the auditor
    January 28, 2011 at 12:31 am

    You need to refinance because the interest rates are down below 5% these days.

  12. Reply
    Smokies Hiker
    January 28, 2011 at 1:16 am

    After only 10 years, you have paid very little on the principal amount borrowed. You have been paying mostly the interest. You should be looking around for a cheaper interest rate and re-finance your loan! Assuming that your credit rating is fine, you should be able to re-finance at an interest rate under 5% easily! I re-financed about a year ago and went from a fixed rate of 6.25% down to 4.65%!
    You are paying $ 16,875 per year in interest alone! Since you didn’t state your monthly payment amount, there’s no way to tell you what the balance of the loan is. Take your monthly payments for a year and add them up. Subtract the $ 16,875 per year interest amount from the 12 months of payments, and the difference is the amount you have paid off on the original $ 250,000 loan. Say your monthly mortgage payment is $ 1,500. $ 1,500 x 12 months = $ 18,000 paid on mortgage. The interest is $ 16,875 for the year, so you would have paid a total of $ 1,125 on the original $ 250,000 borrowed. Your balance on the principal is $ 248,875. You can figure each succeeding year’s mortgage this same way. Start searching for a lower interest mortgage loan!

  13. Reply
    Chris C
    January 28, 2011 at 2:06 am

    About $ 194,563.19 (if it is exactly 10 years paid).
    If it is 10 years and 1 month paid, it is $ 193,930.33.

    Any amortization schedule can be run again a fixed rate mortgage. I used one that I wrote myself, but the concept is the same.
    Here are a couple that are online:

    It is advisable for you to contact your current mortgage lender to see if they can do a “loan modification” for you.
    See if they can get modify your loan to a 15 year at about 4.5%. Basically you’re only asking to modify the rate in your case.

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