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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