Question

You want to take out a $178,000 mortgage (home loan). the interest rate on the loan is 6.3%, and the loan is for 30 years. your monthly payments are $1,101.77. how much will still be owed after making payments for 10 years? round your answer to the nearest dollar.

Answer 1

The remaining balance after making payments for 10 years is approximately $45,788.

Step-by-step explanation:

To find out how much will still be owed after making payments for 10 years, we need to calculate the remaining loan balance.

First, let's calculate the total number of months for the loan using the formula:

Total number of months = loan term in years * 12

30 years * 12 = 360 months

Now, let's find the number of payments made after 10 years:

Number of payments made = 10 years * 12 months/year = 120 months

Next, let's find the remaining balance using the formula:

Remaining balance = original loan amount - (monthly payment * number of payments made)

Remaining balance = $178,000 - ($1,101.77 * 120)

Remaining balance = $178,000 - $132,212.40

Remaining balance = $45,787.60

Therefore, after making payments for 10 years, the amount still owed on the mortgage will be approximately $45,788.