Final answer:
The total monthly housing payment for the Covingtons is $1,590.13.
Step-by-step explanation:
To determine the total monthly housing payment for the Covingtons, we need to add up the mortgage payment, property taxes, property insurance, and condo association fee.
The mortgage payment can be calculated using the formula for a fixed-rate mortgage:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where:
- M is the monthly mortgage payment
- P is the principal loan amount, which is $220,000
- i is the monthly interest rate, which is 5% / 12 = 0.00417
- n is the number of monthly payments, which is 30 years * 12 months = 360
Plugging in the values, we get:
M = $220,000 [ 0.00417(1 + 0.00417)^360 ] / [ (1 + 0.00417)^360 - 1 ]
M = $1,180.13
Next, we add the annual property taxes, property insurance, and condo association fee:
- Monthly property taxes = $1,800 / 12 = $150
- Monthly property insurance = $480 / 12 = $40
- Condo association fee = $220
Finally, we add up all these monthly payments:
Total monthly housing payment = Mortgage payment + Monthly property taxes + Monthly property insurance + Condo association fee
Total monthly housing payment = $1,180.13 + $150 + $40 + $220
Total monthly housing payment = $1,590.13