The interest rate for the first five years of a $165,000 mortgage loan is 6.25% compounded semi-annually. Monthly payments are calculated using a 20-year amortization.
a) What will be the principal balance at the end of the five-year term?
b) What will be the new payments if the loan is renewed at 5.5% compounded semi-annually (and the original amortization period is continued)?

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The Answer of The interest rate for the first five years of a $165,000 mortgage loan is 6.25% compounded semi-annually. Monthly payments are calculated using a 20-year amortization.
a) What will be the principal balance at the end of the five-year term?
b) What will be the new payments if the loan is renewed at 5.5% compounded semi-annually (and the original amortization period is continued)?

The Interest Rate for the First Five Years of a $165,000