First, we need to find the total cost of the down payment and closing costs.
20% of the estimated cost of the house = 0.20 x 175800 = 35160
7% of the estimated cost of the house = 0.07 x 175800 = 12306
Total cost of down payment and closing costs = 35160 + 12306 = 47466
To find out how much you need to save each month, we'll use the formula for future value of an annuity:
FV = Pmt x [((1 + r)^n - 1) / r]
Where:
FV = future value (the amount you want to save)
Pmt = monthly payment
r = monthly interest rate
n = number of months
Let's assume a monthly interest rate of 0.5% (which is 6% annually), and a savings period of 9 years or 108 months.
175800 - 35160 (down payment) = 140640 is the total amount that needs to be borrowed
To find the monthly payments, we need to solve for Pmt:
140640 + 47466 = 188106 as the total amount of money needed at the start
r = 0.005 (monthly interest rate)
n = 108 (number of months)
Pmt = [188106 x 0.005] / [(1 + 0.005)^108 - 1] = 1461.57
So, you need to save approximately $1,461.57 each month to reach your goal of buying a house in 9 years, assuming a 20% down payment and 7% closing costs.
You want to buy a house in 9 years the estimated cost is 175800.00 you want to make a 20% down payment and the closing costs are 7% how much in totality do you need to save each month to reach your goal if you cover closing costs and the down payment
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