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)

Solutions

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 1 year ago

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