Question

You have contracted to buy a house for $300,000, paying $50,000 as a down payment and taking a fully amortizing mortgage for the balance at a 5.5% annual interest rate for 30 years. What will your monthly payment (covering principal and interest) be if you make monthly installments over the next 30 years (round to the nearest dollar)

Answer 1

The monthly payment (covering principal and interest) to be over the next 30 years is:

= $1,419.

Step-by-step explanation:

a) Data and Calculations:

Home Price $300,000

Down Payment 16.666667 % ($50,000/$300,000 * 100)

Loan Term 30 years

Interest Rate 5.5%

Results:

Monthly Pay: $1,419.47

House Price $300,000.00

Down Payment $50,000.00

Loan Amount $250,000.00

Total of 360 Mortgage Payments $511,010.10

Total Interest $261,010.10