1. MORTGAGES Schedules of Payments

2. Schedule of Payments A 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!

3. Example Casey 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.

4. DatePaymentInterestPrincipal Unpaid Balance Owner’s Equity $50, 000$15,000 1O3/12/05 2O4/12/05 3O5/12/05 4O6/12/05