Question

If the purchase price for a house is $325,000, what is the monthly payment if you put 15% down for a 30 year loan with a fixed rate of 6.075%?

Answer 1

Purchase price is $ 325,000

You put 15% down

Time 30 years

rate 6.075%

First we will calculate the total price of the loan

P = 325,000 * (1-0.15)

P = $276,250

Equation:

A = P(1 + rt)

Calculation:

First, converting R percent to r a decimal

r = R/100 = 6.075%/100 = 0.06075 per year.

Solving our equation:

A = 276250(1 + (0.06075 × 30)) = 779715.625

A = $779,715.63

Now, monthly payment

Pm = $779,715.63/(30*12)

Pm = $ 2,165.87