Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT?

a.The remaining balance after three years will be $ 125,000 less one third of the interest paid during the first three years.
b.Because it is a fixed-rate mortgage, the monthly loan payments (which include both interest and principal payments) are constant.
c.Interest payments on the mortgage will increase steadily over time, but the total amount of each payment will remain constant.
d.The proportion of the monthly payment that goes towards repayment of principal will be lower 10 years from now than it will be the first year.
e.The outstanding balance declines at a slower rate in the later years of the loan’s life.

The loan started at 250k. How much would it be to pay off my loan in full at this point?

13 thoughts on “Which of the following statements regarding a 15-year (180-month) $125,000, fixed-rate mortgage is CORRECT?

  1. You need to refinance because the interest rates are down below 5% these days.

  2. After only 10 years, you have paid very little on the principal amount borrowed. You have been paying mostly the interest. You should be looking around for a cheaper interest rate and re-finance your loan! Assuming that your credit rating is fine, you should be able to re-finance at an interest rate under 5% easily! I re-financed about a year ago and went from a fixed rate of 6.25% down to 4.65%!
    You are paying $ 16,875 per year in interest alone! Since you didn’t state your monthly payment amount, there’s no way to tell you what the balance of the loan is. Take your monthly payments for a year and add them up. Subtract the $ 16,875 per year interest amount from the 12 months of payments, and the difference is the amount you have paid off on the original $ 250,000 loan. Say your monthly mortgage payment is $ 1,500. $ 1,500 x 12 months = $ 18,000 paid on mortgage. The interest is $ 16,875 for the year, so you would have paid a total of $ 1,125 on the original $ 250,000 borrowed. Your balance on the principal is $ 248,875. You can figure each succeeding year’s mortgage this same way. Start searching for a lower interest mortgage loan!

  3. About $ 194,563.19 (if it is exactly 10 years paid).
    If it is 10 years and 1 month paid, it is $ 193,930.33.

    Any amortization schedule can be run again a fixed rate mortgage. I used one that I wrote myself, but the concept is the same.
    Here are a couple that are online:

    It is advisable for you to contact your current mortgage lender to see if they can do a “loan modification” for you.
    See if they can get modify your loan to a 15 year at about 4.5%. Basically you’re only asking to modify the rate in your case.

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