You have purchased a home for $200,000 with a down payment of 10 percent. Prevai
ID: 2814250 • Letter: Y
Question
You have purchased a home for $200,000 with a down payment of 10 percent. Prevailing mortgage interest rates are 4.5 percent. If you finance the home for 30 years, what is your monthly payment?
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If you finance it for 20 years, what is your monthly payment?
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If you finance it for 15 years, what is your monthly payment?
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Assuming you choose a 20-year payment period and your annual real estate taxes are $2,000, what is your monthly payment including real estate taxes?
Assuming that your annual home insurance premium is $600, what is your monthly payment including principal, interest, taxes, and insurance (PITI)?
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Explanation / Answer
If you finance it for 30 years, your monthly payment would be:
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If you finance it for 20 years, your monthly payment would be:
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If you finance it for 15 years, your monthly payment would be:
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Answer 1. Assuming 20 year payment period & your annual real estate taxes of $2000. Monthly taxes would be $167. So $1138 (monthly installment) + $167 (monthly real estate tax)= $1306 would be your monthly payment.
Answer 2. Monthly Insurance premium: ($600/12)= $50
So $1087 (Principal) + $51 (Interest) + $167 (Monthly Taxes) + $50 (Monthly Insurance Premium)= $1356 would be your monthly payment.
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360 0.375% $180000 $912 $692,583Related Questions
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