Answer:
24.04%
Step-by-step explanation:
Given that:
Mortgage = $238,000
Number of years = 30
Monthly payment without extra payment= $1220.09
Monthly payment with extra payment = $1420.09
Total amount paid :
Number of months * monthly payment
12 months = 1year
30 years = (30 * 12) = 360 months (without extra payment)
22 years 5 months = (22 * 12) + 5 = 269 months (with extra payment)
Amount paid without extra payment :
$1220.09 * 360 = $439232.4
Percentage of total loan paid as interest :
((439232.4 - 238000) / 238000) * 100%
= 0.8455142 = 84.55%
Amount paid with extra payment :
$1420.09 * 269 = 382004.21
Percentage of total loan paid as interest :
((382004.21 - 238000) / 238000) * 100%
= 0.6050597 = 60.51%
Difference between percentages:
84.55% - 60.51% = 24.04%
