Question

Purchase a home for $160,000. I intend to put down 20% and finance the remainder over 15 years at 6 3/8% interest. If my taxes & insurance totals $3,600 per year, how much will my total monthly payment be?

Answer 1

I will calculate the mortgage payment first, since I don't know how your jurisdiction handles taxes and insurance.
20% down leaves you with 80% of 160 000 or $128 000
i = .06375/12 = .0053125
n = 15*12 = 180

128 000 = paym[ 1 + 1.0053125^-180]/.0053125
payment = $1106.24

monthly taxes (if no interest is involved by simply dividing it by 12) = 3600/12 = 300

so your monthly payment would be sum of those two
or $1406.24

Answer 2

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at interest?