Problem: Here is a type of mortgage problem that I always have trouble with. I think I can get the first part just fine but get stuck on part 2. If you can work it out slowly, it would be helpful.
Question:
You buy a house for $500,000 and put 20% down payment. You get a 30 year fixed rate mortgage at 6.2% .
A) What is your monthly payment?
B) How much would you save if you pay an extra $100 per month?