Asked by Anonymous

You wish to purchase a house for $200,000 with 20% down. You will have it financed over 30 years at a rate of 8%. In addition, your yearly real estate tax is $4,800 while your monthly insurance payment on the home will be $30. What is your monthly mortgage payment? How much does your house cost per month including principal, interest, real estate taxes, and insurance?
Answered by Reiny
first find the mortgage payment, without the taxes and insurance.
200000 less 20 down leaves 160000
let the payment be P
i = .08/12 = .00666666...
n = 12(30) = 360

160000 = P( 1- 1.006666667^-360)/.00666667
160000 = P(136.2835045)
p = 1174.02

I will let you finish it.
Answered by ESIL
910