Floating Real Estate offers you a deal with ABC Bank for a mortgage with a down payment of$200,000 (paid on the day of purchase of the apartment) and the balance financed by a 6.5% p.a.fixed interest (compounded quarterly) mortgage with a term of 20 years with quarterly payments (first payment is paid on the day of purchase of the apartment). Unfortunately, this fixed interest rate will last only three years and then the rate will be variable for the remainder of the mortgage. ABC Bank estimate the variable rate will be 7.5% at the beginning of year 4. For the purpose of your calculation this variable rate is assumed to remain constant over the remaining life of the mortgage. Application fees for this loan are $4000, which must be paid in cash on the date of purchase.

Can you please calculate the payment amount and schedule for me? I had a payment amount of $28,687.62 for first 3 years, and then $30,652.83 after that. However if the first payment is purely principal, this would be different?