Jamal has been approved for a $125,000 loan, 30-year mortgage with an APR of 5.3%. He made a 10% down payment and is closing on April 5th. How much should he expect to pay in prepaid interest at closing?

What will be an ideal response?


125,000 ´ 0.9 = 112,500 ´ 0.053 = 5,962.50 ÷ 365 = 16.34 ´ 25 = $408.50

Mathematics

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