Question

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?

Answer 1

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.

Answer 2

The answer is $688 approx.

Explanation:

Given is :

Jackie obtains a 60% LTV loan on her new $250,000 home

So, loan amount will be =
`0.60*250000=150000` dollars

And there is an annual interest rate of 5.5%.

So, monthly rate will be =
`5.5/12/100=0.0045833`

Hence, the first month interest will be :

`150000*0.0045833=687.50` dollars

Therefore, the answer is $688 approx.