Final answer:
The total monthly payment for the mortgage, property tax, and fire insurance is $1,597.36.
Step-by-step explanation:
To find the total monthly payment for the mortgage, property tax, and fire insurance, we need to calculate the monthly mortgage payment first.
Using the formula for the monthly payment on a mortgage loan: M = P * (r * (1 + r)^n) / ((1 + r)^n - 1), where M is the monthly payment, P is the loan amount, r is the monthly interest rate, and n is the number of monthly payments.
For the mortgage loan of $199,000 at an annual interest rate of 8.5% for 30 years (360 monthly payments), the monthly interest rate is 8.5% / 12 = 0.007083. Plugging in these values into the formula:
M = 199000 * (0.007083 * (1 + 0.007083)^360) / ((1 + 0.007083)^360 - 1) = $1,515.03
Adding the annual property tax bill and fire insurance premium to the monthly mortgage payment:
Total monthly payment = $1,515.03 + ($966 + $482) / 12 = $1,515.03 + $82.33 = $1,597.36