You want to buy a house that is sold for $250,000. Given your income, you are...

You want to buy a house that is sold for $250,000. Given your income, you are able tonpay $1,050 monthly mortgage payment per month. You want to borrow a 30-year fixed rate mortgage. The rate is 4.125. How much down payment do you have to make so as to close the transaction? (ignore the closing cost)

Expert Solution

Calculation & Formula given below

Answer
Down Payment=	Purchase Value - Loan Amount
Down Payment=	$250,000- $216651
Down Payment to be made	$33,349


Calculation
Loan Amount	Calculated Number ( Using Goal SeeK)	$216,651	This formula is under Excel>Data > What if Analysis
Interest		4.125%
Repaymnet Mode		Monthly
No of Years		30

Interest rate Converted Monthly	4.125%/12	0.344%
Number of months	*3012**	360


Year	EMI	Interest	Pricipal	Remianing Balance
1	$1,050	$745	$305	$216,346
2	$1,050	$744	$306	$216,040
Up to 360 Months
359	$1,050	$7	$1,043	$1,046
360	$1,050	$4	$1,046	($0)

jeff jeffy answered 2 years ago

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