Question : Partially amortized fixed rate mortgage (CPM)
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Partially amortized fixed rate mortgage (CPM)
Create a monthly amortization schedule for a partially amortized $300K, 30yr, 4.25% fixed rate mortgage. The mortgage is 40% amortized over the life of the loan. The original loan balance is 75% of the value of the house when initiated and the house is expected to appreciate at a rate of 2.0% annually.
What is the remaining loan balance at the end of the holding period if the homeowner sells the home after 73 months?