You found your dream house. It will cost you $300000 and you will put down $50000...

You found your dream house. It will cost you $300000 and you will put down $50000 as a down payment. For the rest you get a 30-year 5.5% mortgage. What will be your monthly mortgage payment in $ (assume no early repayment)?

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Expert Solution

Cost of House = $300,000

Down payment = $50000

Loan Amount = $300,000 - $50,000 = $250,000

PV of annuity is mathematically represented as:

PV =

n = 30 * 12 = 360 months,

r = 5.5%/12 = 0.4583% (monthly)

250,000 = P * 176.1218

P = $1,419.47

jeff jeffy answered 2 years ago

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