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Question: Her monthly mortgage was $3,000 per month at 1% int rate loan. When her loan int went up to 4.5%, her monthly mortgage only went up to $4,000. Shouldn’t the monthly mortgage have gone up somewhere around 4 -4.5x linearly out of curiosity? How does the math work?
Answer: At 1% (mortgage around $3,000), paying down of loan is $2,400, and paying interest is $600. At 4.5% (mortgage around $4,500) paying down of loan is $1500 and paying interest of $3,000
Another Example here to show the numbers
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