Question

Find the total monthly payment for a $205,000 mortgage loan at 5.25% for 20 years. The assessed value of the home is $240,000. The annual taxes on the home are 1.25% of the assessed value, and the insurance on the home costs $450 per year

I have tried with the calculator its not helping please assist me I will fan medal

Answer 1

Do you have an answer for this? (I'm guessing you have some idea of what the answer should be)

Answer 2

I have no idea but I think its $1668.88 I don't know how I got it

Answer 3

We will first have to calculate the insurance and tax and add that into the mortgage total.

Answer 4

how do I go about doing that

Answer 5

The assessed value is 240,000 and the annual taxes are 1.25%
for 20 years that would be .0125 * 240,000 * 20 = $60,000
20 years of insurance = 450 * 20 = $9,000

So, I think the entire mortgage should be for 205,000 + 60,000 + 9,000 =
$274,000
DO you agree with that?

Answer 6

yes I do agree

Answer 7

Here's the formula I use for mortgages:

Answer 8

ok

Answer 9

The rate would be 5.25 / 1,200 = 0.004375
principal = 274,000
months = 20 years * 12 = 240
Now, we put those numbers into the formula.

Answer 10

Monthly Payment = {0.004375 + 0.004375 / [(1.004375)^240 -1]} * 274,000
Now we calculate that.

Answer 11

how do I calculate that

I get 1668.88

Answer 12

No I'll show you

Answer 13

Payment = [0.004375 + {0.004375 / [(1.004375)^240 -1]}] * 274,000

Payment = {0.004375 + [0.004375 / 1.8511140206]} * 274,000

Payment = {0.004375 + 0.0023634417} * 274,000

Payment = 1846.3330157857

Payment = 1846.33 (rounded)

Answer 14

And to double check, here's a loan payment calculator.
http://www.1728.org/calcloan.htm