In: Finance
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)?
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