To calculate the total monthly mortgage payment, follow these steps:
1. Identify and list the given details:
- Principal Per Month: $1010
- Interest Per Month: $156
- Property Tax Rate Per Year: \(1\%\) of the value of the house
- Value of the House: $140,000
- Home Insurance Per Year: $520
2. Calculate the monthly property tax:
The property tax per year is \(1\%\) of $140,000:
[tex]\[
\text{Annual Property Tax} = 0.01 \times 140,000 = 1400
\][/tex]
To get the monthly property tax:
[tex]\[
\text{Monthly Property Tax} = \frac{1400}{12} \approx 116.67
\][/tex]
3. Calculate the monthly home insurance cost:
The home insurance per year is $520.
To get the monthly home insurance:
[tex]\[
\text{Monthly Home Insurance} = \frac{520}{12} \approx 43.33
\][/tex]
4. Sum up all monthly costs:
Now, add the Principal Per Month, Interest Per Month, monthly Property Tax, and monthly Home Insurance:
[tex]\[
\text{Total Monthly Payment} = 1010 + 156 + 116.67 + 43.33 = 1326
\][/tex]
Therefore, the total monthly mortgage payment is:
[tex]\[
\$1,326
\][/tex]
