Final answer:
The monthly payment for a 25-year mortgage at 6.15% APR can be calculated using the standard mortgage formula, incorporating compounding interest factors and the total number of payments. An exact figure would require the use of a financial calculator.
Step-by-step explanation:
A 25-year mortgage with a 6.15% APR and monthly compounding would result in a monthly payment calculation based on these factors. To solve this, a standard mortgage monthly payment formula can be used which is P = [r(1+r)^n]/[(1+r)^n-1] where P is the monthly payment, r is the monthly interest rate (APR divided by 12), and n is the number of total payments (25 years times 12 months).
For a $159,000 loan, the rate per month would be 6.15%/12, and the number of payments would be 25*12. Plugging these values into the formula gives the monthly payment. However, as this requires financial calculation, please employ a reliable financial calculator or software to obtain the accurate monthly payment.
Understanding the impact of interest rates on monthly payments is crucial in financial planning. A slight change in the interest rate, whether in Adjustable-Rate Mortgages (ARMs) or fixed-rate mortgages, can significantly impact the overall payment. The comparatives given show how a low introductory rate of 4 percent that jumps to higher rates can substantially increase the monthly financial burden on homeowners.