Fan & Medal...
Walker is buying a house for $225,000. He is financing $195,000 and obtained a 30-year, fixed-rate mortgage with a 6.625% interest rate. How much are his monthly payments?
$1,248.61
$1,076.56
$1,712.09
$1,440.70

Question

Fan & Medal...
Walker is buying a house for $225,000. He is financing $195,000 and obtained a 30-year, fixed-rate mortgage with a 6.625% interest rate. How much are his monthly payments?
$1,248.61
$1,076.56
$1,712.09
$1,440.70

photon336 · Answer

the interest rate is yearly?

leozap1 · Answer

It doesn't say, but if he pays monthly, I would guess that the interest would be monthly.

leozap1 · Answer

Wouln't the interest be on the $195,000 since he is financing it?

photon336 · Answer

yeah, I think you're right. What I think we can do is probably use the simple interest formula 

$$\frac{ P*R*T }{ 100 } = Simple~interest $$

leozap1 · Answer

When I used the amount $195,000 I ended up getting $ 1,242.19.

photon336 · Answer

what formula did you use

leozap1 · Answer

I used this, I think it's the same formula you said. http://www.calculatorsoup.com/calculators/financial/interest-only-mortgage-calculator.php

leozap1 · Answer

Nvm, I see what happened when I just used the formula you posted instead of the calculator. I got 1,440.70 .

photon336 · Answer

remember that the interest rate is usually anaully

leozap1 · Answer

Yea that's how I did it, because monthly gave me a wrong answer.

photon336 · Answer

yeah so put in 30 years first.

photon336 · Answer

Yeah for some reason i'm getting this. 

$$\frac{ 195,000*6.625*30 }{ 100 } = 387,562.5/(360) = 1076.56 $$

leozap1 · Answer

Idk, I submitted the quick check and it turned out to be $1,248.61.