Question

Suppose you take out a 30-year mortgage for a house that costs $496,845. Assume the following:

• The annual interest rate on the mortgage is 3.9%.
• The bank requires a minimum down payment of 16% at the time of the loan.
• The annual property tax is 2.1% of the cost of the house.
• The annual homeowner's insurance is 0.6% of the cost of the house.
• There is no PMI

If you make the minimum down payment, what will your monthly PITI be?

Round your answer to the nearest dollar.

Answer 1