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6 June, 00:31

An FHA-insured loan in the amount of $57,500 at a 6 ½% interest rate for 30 years was closed on March 17. The first monthly payment is not due until May 1. If the interest is paid monthly in arrears, how much pre-paid interest does the buyer owe at closing? (Use a 360-day year)

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  1. 6 June, 01:38
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    Answer: $145.32

    Explanation:

    $57500 loan * 6.5/100

    $ 57500 * 0.065 = $3737.50 annual interest

    Monthly interest = 3737.50 : 12 month

    = $ 311.45

    Daily interest = monthly interest : 30 days

    = $311.45 : 30

    = $10.38

    So, from March 17 to May 1 = 14days

    14*$10.38 = $145.32
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