For a 30-year house mortgage of $125,000 at 5.5% interest. What is the amount of the first monthly payment that goes to repay the princible

To find the amount of the first monthly payment that goes toward repaying the principal in a 30-year mortgage of $125,000 at a 5.5% annual interest rate, we follow these steps:

### Step 1: Calculate the Monthly Payment
The formula to calculate the monthly payment for a mortgage is:

\[
M = \frac{P \times r(1 + r)^n}{(1 + r)^n - 1}
\]

Where:
- $ M $ is the monthly payment.
- $ P = 125,000 $ is the loan amount.
- $ r = \frac{5.5\%}{12} = \frac{0.055}{12} = 0.0045833 $ is the monthly interest rate.
- $ n = 30 \times 12 = 360 $ is the total number of monthly payments.

Let's calculate the monthly payment.

### Step 2: Determine the Interest Portion of the First Payment
The interest portion of the first payment is calculated as:

\[
\text{Interest} = P \times r = 125,000 \times 0.0045833
\]

### Step 3: Determine the Principal Portion
The principal portion is the difference between the total monthly payment and the interest portion:

\[
\text{Principal} = M - \text{Interest}
\]

Let's calculate these values now.The monthly payment for the mortgage is approximately **$709.74**.

In the first payment:
- The interest portion is **$572.92**.
- The principal portion is **$136.82**.

Would you like further details or have any questions about this calculation?

Here are 5 related questions you might find helpful:
1. How does the principal portion change over time in a mortgage?
2. How can I calculate the total interest paid over the life of the loan?
3. What happens if I make extra payments on the principal?
4. How does the interest rate impact the monthly payment and total loan cost?
5. How do you calculate the loan amortization schedule?

**Tip:** In the early years of a mortgage, most of your payment goes toward interest, with the principal portion increasing over time.

For a 30-year house mortgage of $125,000 at 5.5% interest. What is the amount of the first monthly payment that goes to repay the principal?

Find out how much of your first monthly payment goes toward repaying the principal in a 30-year mortgage of $125,000 at a 5.5% interest rate. This detailed solution includes mortgage calculations using formulas for monthly payment, interest, and principal portions. Ideal for finance and business students.

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