Question

Suppose you take out a 30-year mortgage for a house that costs $496,845. Assume the following:

• The annual interest rate on the mortgage is 3.9%.
• The bank requires a minimum down payment of 16% at the time of the loan.
• The annual property tax is 2.1% of the cost of the house.
• The annual homeowner's insurance is 0.6% of the cost of the house.
• There is no PMI

If you make the minimum down payment, what will your monthly PITI be?

Round your answer to the nearest dollar.

Answer 1

CALCULATION OF MONTHLY PITI
PARTICULARS	AMOUNT ( $ )	YEARLY AMOUNT ($)	MONTHLY AMOUNT ($ )
LOAN AMOUNT	496,845
LESS : DOWN PAYMENT 16 %	79,495
NET LOAN AMOUNT	417,350	13,912	1,159
INTEREST RATE @ 3.90 % OF $ 417350	488,300	16,277	1,356
ANNUAL PROPERTY TAX @ 2.10@ OF $ 496845		10,434	870
ANNULA INSURANCE @ 0.6@ OF $ 496845		2,981	248
TOTAL MONTHLY PITI			3,634