Question

You are considering purchasing a new home. You will need to borrow $200,000 to purchase the home. A mortgage company offers you a 15-year fixed rate mortgage (180 months) at 0.55% per month. If you borrow the money from this mortgage company, your monthly mortgage payment will be closest to

Answer 1

Loan amount = $200,000

Calculating the Monthly mortgage payment;-

Where, P = Loan amount = $200,000

r = Periodic Interest rate = 0.55%

n= no of periods = 180

Monthly Payment = $1753.23

So, monthly mortgage payment will be closest to $1753.23

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