MORTGAGESSchedules of Payments

Schedule of PaymentsA detail analysis of each mortgage payment

◦ Includes: Interest Principal Unpaid balance Owner’s equity

Often done using a spreadsheet◦ Calculations can be quickly done for an entire

mortgage.

For our purposes we will only look at schedules for the first four or five payments!

ExampleCasey and Evelyn have bought a

house from Mr. Jones for $65, 000. They had a down payment of $15, 000 and had to borrow the rest from the bank at an interest rate of 6.75%. Prepare a schedule of mortgage payments for a period of nine months. The mortgage is taken over 25 years. The first mortgage payment was dated March 10.

Date Payment Interest PrincipalUnpaid

Balance

Owner’s

Equity

$50, 000 $15,000

1O3/12/0

5

2O4/12/0

5

3O5/12/0

5

4O6/12/0

5