360,569 views
28 votes
28 votes
In many cases, lenders allow homeowners to include their homeowner's insurance premium with their monthly

mortgage payment. Robert's home is worth $318,900. If his homeowner's insurance premium is $0.44 per $100, how
much is added to his monthly mortgage payment for insurance? Show work.

User David Taylor
by
2.7k points

1 Answer

19 votes
19 votes

Answer:

$3.89 is added to his monthly mortgage payment for insurance.

Explanation:

Given that in many cases, lenders allow homeowners to include their homeowner's insurance premium with their monthly mortgage payment, and Robert's home is worth $ 318,900, if his homeowner's insurance premium is $ 0.44 per $ 100, to determine how

much is added to his monthly mortgage payment for insurance (based on a 30-year mortgage) the following calculation should be performed:

(((318,900 / 100) x 0.44) / 30) / 12 = X

((3,189 x 0.44) / 30) / 12 = X

(1,403.16 / 30) / 12 = X

46.772 / 12 = X

3.89 = X

Thus, $ 3.89 is added to his monthly mortgage payment for insurance.

User Lucas Ramadan
by
3.1k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.