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Del is buying a $250,00 home. he has been appand i be 3175% mong he was required to make a 15% down payment and will be closing on the house on july 15. his first mortgage payment is due on august 1. how mud should he expect to pay in prepaid interest at the closing?
Del is buying a $250,00 home. he has been appand i be 3175% mong he was required to make a 15% down payment and will be closing on the house on july 15. his first mortgage payment is due on august 1. how mud should he expect to pay in prepaid interest at the closing?
Del, purchasing a $250,000 home with a 15% down payment, would pay around $371.11 in prepaid interest at closing if the annual interest rate is 3.75%.When Del is buying a $250,000 home and is required to make a 15% down payment, he would pay $37,500 ($250,000 x 0.15).Assuming the remainder is financed through a mortgage, the principal amount for the mortgage would be $212,500 ($250,000 - $37,500).Closing on the house on July 15 and with the first mortgage payment due on August 1, Del will have to pay prepaid interest from the closing date to the end of that month. Prepaid interest is calculated using the annual interest rate of the mortgage divided by the number of days in a year, then multiplied by the number of days that will accrue interest. Since the exact rate isn't provided, let's use an example of a 3.75% annual interest rate.The calculation would be as follows -Annual interest: $212,500 x 0.0375 = $7,968.75Daily interest: $7,968.75 / 365 = $21.83Days of interest for July (15th to 31st): 17 daysPrepaid interest: $21.83 x 17 days = $371.11Del should expect to pay around $371.11 in prepaid interest at closing, given these assumptions....