Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

The price of a home is $120,000. The bank requires a 10% down payment
and two points at the time of closing. The cost of the home is financed wit
a 30-year fixed-rate mortgage at 8.5%. Find the required down payment

Sagot :

dudleycierra024

Answer: The amount of the loan is $120,000 -10% + 2% = $110,400, assuming the "points" are added to the financed amount.

R = Pi/[1 - (1+i)^(-n)] where

P = 110,400

R = the monthly payment

i = 8.5/[100(12)] = .007083...

n = 30(12) = 360 yielding

R = $848.88 per month.

Therefore, the total interest paid is 360(848.88) - 100,400.

Thanks for stopping by. We are committed to providing the best answers for all your questions. See you again soon. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.