Question

Jamal has been approved for $125,000 loan, 30-year mortgage with an APR of 5.3%. He made a 10% down payment and is closing on April 5th. How much should he expect to pay in prepaid interest at closing?​

Answer 1

Explanation:

Loan APR is 5.535%

Loan information:

Mortgage amount:

$125,000

Term in years:

Interest rate:

5.3%

Monthly payment:$694.13

Answer 2

The total amount paid by Jamal will be $408.38

Explanation:

Jamal has been approved for $125,000 loan.

Time or t = 30-year

r = 5.3% or 0.053

He made a 10% down payment, means 90% was loan.

`125000*0.9=112500`

This amount multiplied by rate.

=>
`112500*0.053=5962.50`

For per day value, divide this by 365.

`(5962.50)/(365)` = $16.335

Given is the deal is closing on April 5th. April has 30 days, so, there are 25 days left.

So, the final amount becomes =
`16.335*25=408.375` ≈ $408.38