Fixed rate mortgage on a house


You're in the process of obtaining the 10-year fixed rate mortgage on a house which you are purchasing. The mortgage amount is $225,000 and mortgage rate is 4.8%. (This is the nominal annual rate.) Assume that all monthly payments are made at the end of every month.

What percentage of your payments the third year goes toward repayment of principal?

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Finance Basics: Fixed rate mortgage on a house
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