Question

You have purchased a home for $200,000 with a down payment of 10 percent. Prevailing mortgage...

You have purchased a home for $200,000 with a down payment of 10 percent. Prevailing mortgage interest rates are 4.5 percent. If you finance the home for 30 years, what is your monthly payment?

N

I/Y

PV

PMT

FV

If you finance it for 20 years, what is your monthly payment?

N

I/Y

PV

PMT

FV

If you finance it for 15 years, what is your monthly payment?

N

I/Y

PV

PMT

FV

Assuming you choose a 20-year payment period and your annual real estate taxes are $2,000, what is your monthly payment including real estate taxes?

Assuming that your annual home insurance premium is $600, what is your monthly payment including principal, interest, taxes, and insurance (PITI)?

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Answer #1

If you finance it for 30 years, your monthly payment would be:

N

I/Y

PV

PMT

FV
360 0.375% $180000 $912 $692,583

If you finance it for 20 years, your monthly payment would be:

N

I/Y

PV

PMT

FV
240 0.375% $180000 $1138 $441984

If you finance it for 15 years, your monthly payment would be:

N

I/Y

PV

PMT

FV
180 0.375% $180000 $1377 $353080

Answer 1. Assuming 20 year payment period & your annual real estate taxes of $2000. Monthly taxes would be $167. So $1138 (monthly installment) + $167 (monthly real estate tax)= $1306 would be your monthly payment.

Answer 2. Monthly Insurance premium: ($600/12)= $50

So $1087 (Principal) + $51 (Interest) + $167 (Monthly Taxes) + $50 (Monthly Insurance Premium)= $1356 would be your monthly payment.

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