Final answer:
The monthly mortgage payment for a $75,000 property with a 20% down payment, financed through a 30-year mortgage with a 12% annual interest rate, compounded monthly, is approximately $607.32.
Step-by-step explanation:
To calculate the monthly mortgage payments, we can use the formula for a fixed-rate mortgage payment. The formula is:
M=P× r(1+r)n/ (1+r)n −1
where:
M is the monthly mortgage payment,
P is the principal amount (loan amount),
r is the monthly interest rate (annual rate divided by 12 and converted to a decimal),
n is the total number of payments (loan term in years multiplied by 12).
In this case:
Principal (P) = $75,000 - (20% \text{ down payment}) = $60,000
Annual interest rate (i) = 12%
Monthly interest rate (r) = 12%/12×100
Loan term (n) = 30 years × 12 months/year = 360 months
Now, let's plug these values into the formula:
M=60,000× 0.01(1+0.01)^360/(1+0.01)360−1
Let's calculate this to find the monthly mortgage payment. Please note that for a more accurate result, it's recommended to use financial calculators or software.
M≈607.32
So, the monthly mortgage payment would be approximately $607.32.