I have a mortgage amount of 100K ($100 000) and an Interest rate of 1.69% the first 2 years, then after the 9 years the Interest rate goes up to 8.9%. Payment frequency is monthly and the Amortization period is 19 years. What would be the new monthly payment amount? Thanks!
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s = principal r = monthly interest rate n = number of months d = monthly payment s = 300000 r = 2.95/100/12 n = 25*12
Payment amount to pay off at 2.95% over 25 years
d = r (1 + 1/((1 + r)^n - 1)) s = 1414.84
However, this is only maintained for four years.
Principal remaining after four years
x = 4*12 s = (d + (1 + r)^x (r s - d))/r = 265536.39
Continuing with new figures.
r = 4.5/100/12 n = 21*12
Payment amount to pay off at 4.5% over 21 years
d = r (1 + 1/((1 + r)^n - 1)) s = 1630.70