To find the down payment, we need to multiply the price of the house by the percentage paid as a down payment:
Down payment = 16% × $460,000 = $73,600
The original amount financed is the price of the house minus the down payment:
Original amount financed = $460,000 - $73,600 = $386,400
To find the monthly payment, we can use the formula for a fixed-payment loan:
Monthly payment = (P × r) / (1 - (1 + r)^(-n))
where P is the principal (the original amount financed), r is the monthly interest rate (5.4% divided by 12), and n is the number of monthly payments (30 years times 12 months per year, or 360).
Monthly payment = ($386,400 × 0.0045) / (1 - (1 + 0.0045)^(-360)) = $2,187.28
To find the total amount of money Jenelle will spend on the home, we can multiply the monthly payment by the number of payments:
Total amount spent = (Monthly payment) × (Number of payments)
Number of payments = 30 years × 12 months per year = 360
Total amount spent = $2,187.28 × 360 = $788,020.80
Adding the down payment, the total cost of the home for Jenelle will be:
Total cost = $460,000 + $788,020.80 = $1,248,020.80