To calculate the down payment, multiply the price of the home by the down payment percentage. In this case, the down payment percentage is 20%, so the down payment would be:
Down payment = 145,000 * 0.20 = $29,000
To calculate the cost of the three points at the time of closing, multiply the price of the home by the point percentage. In this case, three points are required, which means 3% of the price of the home:
Points = 145,000 * 0.03 = $4,350
To calculate the loan amount, subtract the down payment and the points from the price of the home:
Loan amount = 145,000 - 29,000 - 4,350 = $111,650
To calculate the monthly mortgage payment, we need to use the loan amount, the interest rate, and the loan term. The loan term is 30 years, and the interest rate is 9.5%. To calculate the monthly payment, we can use the formula for a fixed-rate mortgage:
Monthly payment = Loan amount * (monthly interest rate / (1 - (1 + monthly interest rate)^-number of months))
First, we need to calculate the monthly interest rate. Divide the annual interest rate by 12 (the number of months in a year) and convert it to a decimal:
Monthly interest rate = 9.5% / 12 = 0.00791667
Next, we need to calculate the number of months. Multiply the number of years (30) by 12:
Number of months = 30 * 12 = 360
Now, we can calculate the monthly mortgage payment using the formula:
Monthly payment = 111,650 * (0.00791667 / (1 - (1 + 0.00791667)^-360))
Using a financial calculator or spreadsheet software, the monthly mortgage payment is approximately $945.09.
Therefore, the down payment is $29,000, the cost of the points is $4,350, and the monthly mortgage payment is $945.09.