Take a look at my solution here, it is the same question asked by Kenny
except that "PMI payment of $25.88 each month for 77 months" part.
https://www.jiskha.com/questions/1820036/suppose-the-bainters-purchase-the-150-000-00-home-with-a-20-down-payment-a-30-year
In that question at least there were answers supplied, but I would have the same
objection. "What is the total cost of the loan?" is not a valid question for these compound
interest questions.
A house is being purchased for $138,000.00. The 30-year mortgage has a 10% down payment, an interest rate of 4.875%, and a PMI payment of $25.88 each month for 77 months. The yearly taxes are $2400.00, and the insurance is $750.00 per year, which is to be placed into an escrow account.
What is the total cost of the loan? Round your answer to the nearest $100.00
1 answer