Question

Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 20% down. Assume that the monthly cost to finance $1,000 is $6.00. What are the monthly payments?

Answer 1

% Financed = 100% - 20% = 80%.

Amt. Financed=0.80 * 450,000 = $360000.

Monthly Payment=(360000/1000) * 6 = $2160.