Question

Brad and Sam take a 30-year mortgage for a house that costs $103570. Assume the following: The annual interest rate on the mortgage is 4.3%. The bank requires a minimum down payment of 20% of the cost of the house. The annual property tax is 1.6% of the cost of the house. The annual homeowner's insurance is $674. There is no PMI. If they make the minimum down payment, what will their monthly PITI be? Round your answer to the nearest dollar.

Answer 1

cost of the house is $103570

a down payment (DP) is 20% of the cost

....................... the minimum down payment

.

so loan amount is

.

.

L=82856

r=4.3% = 0.043

t=30 years

n=12 for monthly payment

.....................monthly payment for a loan

.

.

annual property tax is 1.6% of the cost

annual property tax=1.6% of 103570

annual property tax=0.016(103570)

annual property tax=1657.12

monthly property tax=1657.12/12

monthly property tax=138.093

.

.

annual homeowner's insurance is $674.

monthly homeowner's insurance is $674/12.

monthly homeowner's insurance is $56.167

.

.

monthly PITI is

.......................monthly PITI