Explanation:
Your monthly payments with taxes and insurance included would be $2,903.71. This is calculated by taking the loan amount of $450,000 and multiplying it by the simple interest rate of 6.00%. The result is $27,000, which is then divided by the length of the loan, 30 years. This gives you
the principal and interest portion of your monthly payment, which is $2,033.33. To that, you add your yearly taxes of $2,000 and insurance of $1,500, divided by 12 months, to get an additional $416.67 and $125, respectively. Adding these two numbers together gives you your total monthly payment of $2,903.71.