Question : You want to buy a home worth $220,000 with a
You want to buy a home worth $220,000 with a down payment of $20,000 and the rest borrowed from a mortgage company. The annual nominal interest rate is 2.75%, compounded semi annually. The repayment is done in equal installments every two weeks, so that there are 26 payments in a year. The special term of the mortgage is 10 years. Amortization period is 20 years. Find your mortgage payment. After the term, how much do you owe to the company. What is your payment towards the principal, and how much towards interest during the term. What is the total interest paid in the amortization period?