To find the mortgage balance after the first three payments, we need to follow the process of amortizing the loan. The balance after each payment decreases by the amount of the principal paid, while the interest is recalculated on the remaining balance after each payment.

Given the dataTo find the mortgage balance after the first three payments, we need to follow the process of amortizing the loan. The balance after each payment decreases by the amount of the principal paid, while the interest is recalculated on the remaining balance after each payment.

Given the

• Mortgage Amount: $190,000
• APR: 4.25% (Annual Percentage Rate)
• Monthly Payment: $1,429.33
• First payment interest: $672.92, first principal: $756.41
• Second payment principal: $670.24
• Third payment principal: $761.78

Let's walk through the calculations:

Payment 1:

• Interest = $672.92
• Principal = $756.41
• Mortgage Balance after Payment 1 = $190,000 - $756.41 = $189,243.59

Payment 2:

• Interest = $(189,243.59 \times \frac{4.25\%}{12})$ = $667.55 (provided)
• Principal = $670.24
• Mortgage Balance after Payment 2 = $189,243.59 - $670.24 = $188,573.35

Payment 3:

• Interest = $(188,573.35 \times \frac{4.25\%}{12})$ = $661.55
• Principal = $761.78
• Mortgage Balance after Payment 3 = $188,573.35 - $761.78 = $187,811.57

Final result:

The mortgage balance after the third payment is $187,811.57.

Would you like further clarification or a breakdown of these steps?

5 related questions:

1. How is the interest recalculated after each payment?
2. What happens if additional payments are made toward the principal?
3. How does changing the interest rate affect the mortgage balance?
4. What if the loan term were 30 years instead of 15 years?
5. How do taxes and insurance affect the mortgage payment?

Tip: To pay off a mortgage faster, consider making extra payments toward the principal regularly.