2. You take out a 30-year mortgage for $275,000 at an interest rate of 5.1 percent. How much will you pay in interest over the life of this loan? Now assume you pay an extra $100 per month on this loan. How much is your total interest now? How much sooner will the mortgage be paid off?

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Q: Percentage of

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A: The conceptual formula used:

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A: A snapshot from the loan documents has been put up. The type of loan has to be determined.

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A: Formula: Percentage of Appraised value = Appraised value x Lender's percentage

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A: answer and calculations are given below

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A: PMT: PMT is the annual payment. A loan borrowed should repaid annual or quarterly or monthly…

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.