Question

Michelle is buying a 95,000 dollar home. She has been approved for a 4.95% APR, 30 year mortgage. She made a 15% down payment and will be closing on April 8th. How much should she expect to pay in prepaid interest at the closing

Answer 1

At the closing of her home purchase, Michelle should expect to pay prepaid interest of $6,934.50. This amount represents the interest accrued from April 8th to the end of the month.

The monthly payment for Michelle's mortgage is calculated as follows:

Principal and interest payment = (95,000 - 15,000) x 0.0495 / 12

This equals a monthly payment of $420.63.

Michelle's total interest over the life of the loan is $119,750. This amount is the sum of her prepaid interest and the total interest she pays over the life of the loan.

Answer 2

b

Explanation:

because u can tell