You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $153,000 at 4% for 17 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will
reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional
mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will
you pay each month for a mortgage of $153,000 at 4% for 17 years? (Do not round intermediate calculations. Round your answer to
2 decimal places.)
Monthly payment
Transcribed Image Text:You can save a significant amount of mortgage interest paid if you make one additional principal and interest payment a year. This will reduce a 30-year mortgage by around 6 years. It also increases your equity in the home faster. If you choose to pay one additional mortgage payment a year by paying 1/12 of it each month (make certain to note the extra money is to reduce principal), how much will you pay each month for a mortgage of $153,000 at 4% for 17 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Monthly payment
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