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Suppose you are buying a house and have taken out a mortgage for $250,000. The mortgage...

Suppose you are buying a house and have taken out a mortgage for $250,000. The mortgage is a 30 year fixed rate mortgage with an APR of 5.25%. What is your monthly mortgage payment?

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Answer #1
A B C D E F G H I
2
3 Calculation of monthly payment:
4
5 Monthly payment can be calculated using PMT(RATE,NPER,PV,FV,TYPE) function in Excel as follows:
6
7 Given the following data:
8 Loan Amount $250,000
9 Duration of mortgage 30 Years
10 Interest rate 5.25%
11
12 Monthly Payment can be calculated as below:
13 RATE (Monthly interest rate): 0.44% =D10/12
14 NPER (No of Months): 360 =D9*12
15 PV (Loan Amount): -$250,000 =-D8
16 FV 0
17 TYPE 0
18 Monthly Payment $1,380.51 =PMT(D13,D14,D15,D16,D17)
19
20 Hence Monthly Mortgage Payment is $1,380.51
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