Question

John Doe has just been offered a home loan towards purchase of house that is being sold for ​$250,000.He will be required to make a 5​% down​ payment, as well as mortgage processing fees and closing costs of ​$4,000. The loan has to be paid off in monthly payments over a​ 30-year period at a fixed interest rate of 4​% per year compounded monthly. He will also be required to pay an additional $200 per month as mortgage insurance. Using​ Excel, answer the following​ questions:(PLEASE SHOW FORMULA)

The monthly mortgage payment is _______

The total monthly payment is _________

The nominal APR is________

 The effective APR is_________

Over the​ 30-year period, the total amount of interest paid on the loan is__________

The interest amount in the month 69 payment is __________

 The principal amount in the month 69 payment is _________

The balance on the loan immediately after making the payment at the end of  month 69   is___________

Answer 1

The same images with formulas shown:

The monthly mortgage payment is $1,133.86

The total monthly payment is $1,333.86

The nominal APR is 4%

The effective APR is 4.07%

Over the​ 30-year period, the total amount of interest paid on the loan is $170,690.08

The interest amount in the month 69 payment is $704.77

The principal amount in the month 69 payment is $429.09

The balance on the loan immediately after making the payment at the end of month 69 is $211,001.95