Find the following for a $200,000 fixed- rate mortgage and the given information

Question

Find the following for a $200,000 fixed- rate mortgage and the given information. Monthly mortgage payment (principal and interest) Monthly house payment (including property taxes and insurance) Initial monthly interest Income tax deductible portion of initial house payment net initial monthly cost for the home (considering tax savings) The monthly mortgage payment is $ (Round to the nearest dollar as needed) The monthly house payment is S (Round to the nearest dollar as needed) The initial monthly interest is $ (Round to the nearest dollar as needed) The income tax deductible portion of the initial house payment is $ (Round to the nearest dollar as needed) The net initial monthly cost for the home is $ (Round to the nearest dollar as needed

Explanation / Answer

1. From the given data Monthly mortgage payment is given by:

M=P[i(1+i)^n]/(1+i)^n-1

i=0.055/12 = 0.0045833

n= 12*10 = 120 monthly pay

(1+i)^n = (1.0045833)^120

= 2.196

M=P[i(2.196)/2.196-1]

= P [ 0.0045833 * 2.196]/ 1.196

= 200000*0.00841

= $ 1683.098.

Monthly house payment is : $1683.098

Mortgage payment is : $(1683.098 * 120) - $ 200000

= $ 1971.7752

initial monthly interest is : P(1+r/n)^nt

= 200000(1+0.055/12)^120

= $ 346215.283

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