A thirty year $200,000.00 mortgage has a monthly payment of $1,199.10 based on a rate of 6% APR. After making 180 payments over fifteen years, how much of the mortgage do you still owe?

Question

Quizplus · Accepted Answer

First, we need to calculate the remaining number of payments. 15 years is 180 months, so the total number of payments for a 30 year mortgage is 360.

Next, we need to calculate how much has been paid off in 180 payments. Using an amortization calculator, we find that after 180 payments, $57,901.85 of the mortgage has been paid off.

Finally, to find out how much is still owed, we subtract the amount paid off from the original mortgage amount of $200,000.

$200,000 - $57,901.85 = $142,098.15

Therefore, the answer is C.

A Thirty Year $200,000