A couple finances a house valued at $125,000. They make a $20,000 down payment and finance the remainder for 30 years at 6.8%. Taxes on the property are estimated to be $621 per year. Insurance on the property is projected to cost $685 per year.

Question

The monthly PITI payment is:

Answer 1

balance to be mortgaged = 125000-20000 = 105000
let the monthly mortgage payment be x

x (1 - 1.005666667^-360)/.005666667 = 105000

i got x = $684.52
divide each of the insurance and taxes by 12 and add to the mortgage payment.

Answer 2

For your question:
x=[150000(.005666667)(1.00566666667)^360]/[(1.00566666667)^360 -1]
x=977.88778 as the mortgage payment. Then add 1/12(621+685)=108.83333, and you have $1086.72 as the total monthly payment.

Answer 3

Sorry about that. I miscalculated. For your question:
x=[105000(.005666667)(1.00566666667)^360]/[(1.00566666667)^360 -1]
x=684.521 as the mortgage payment. Then add 1/12(621+685)=108.83333, and you have $793.35 as the total monthly payment.