Question

You have a $212,000 mortgage at 7.2% APR. Each month you pay $2200.00 towards your mortgage. How much of the mortgage is applied to JUST PRINCIPAL? (Do not include any taxes/insurance)(1 point)
Responses

$928.00
$928.00
$911.60
$911.60
$2200.00
$2200.00
$1272.00

Answer 1

To calculate how much of your mortgage payment goes towards the principal, we first need to determine the monthly interest payment.

1. **Calculate Monthly Interest Rate:**
The APR is 7.2%, so the monthly interest rate is:
\[
\text{Monthly Interest Rate} = \frac{7.2\%}{12} = \frac{0.072}{12} = 0.006
\]

2. **Calculate Monthly Interest Payment:**
The interest payment for the month is calculated as:
\[
\text{Interest Payment} = \text{Loan Amount} \times \text{Monthly Interest Rate}
\]
Plugging in the values:
\[
\text{Interest Payment} = 212,000 \times 0.006 = 1,272
\]

3. **Calculate Principal Payment:**
The total payment is $2,200, so the part of the payment that goes toward the principal is:
\[
\text{Principal Payment} = \text{Total Payment} - \text{Interest Payment}
\]
\[
\text{Principal Payment} = 2,200 - 1,272 = 928
\]

Therefore, the amount of the mortgage payment applied to just principal is **$928.00**.