If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of $805.50 would go toward principal?

Name: If you have a $150,000 30-year 5% mortgage, how much of your first monthly payment of $805.50 would go toward principal?
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Quizplus · Accepted Answer

The interest for the first month is calculated as 5% per year of $150,000, which is $7,500 annually or $625 monthly ($7,500/12). Subtracting this interest from the total monthly payment of $805.50 gives $805.50 - $625 = $180.50 toward the principal.

If You Have a $150,000 30-Year 5% Mortgage, How Much