This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $118,428 left to pay on your loan. Your house is now valued at $210,000.Your current situationHow much of the original loan have you paid off? (i.e, how much have you reduced the loan balance by? Keep in mind that interest is charged each month - it's not part of the loan balance.)

Question
Asked Oct 28, 2019
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This year (10 years after you first took out the loan), you check your loan balance. Only part of your payments have been going to pay down the loan; the rest has been going towards interest. You see that you still have $118,428 left to pay on your loan. Your house is now valued at $210,000.

Your current situation

How much of the original loan have you paid off? (i.e, how much have you reduced the loan balance by? Keep in mind that interest is charged each month - it's not part of the loan balance.)

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Expert Answer

Step 1

Hi, there is some additional data missing the question. The total mortgage amount, interest rate, proportion of down payment and tenure of the mortgage is missing in the question. Hence we are randomly assuming the total mortgage amount as $140,000, interest rate as 9%, proportion of down payment as 10% and tenure of the mortgage is 30 years. Replace the values as provided in the text,

Step 2

Calculation of original loan paid off:

The original loan paid off is $25,572.

Excel Spreadsheet:

...
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А В 1 Mortgage Amount 2 % of Down Payment 3 Down Payment 4 Current Mortgage 5 Loan Balance 6 Original Loan paid off $25,572 $160,000 10% $16,000 $144,000 $118,428

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