What is the Bainters' monthly cost if they purchase the home?

Suppose the Bainters purchase the $150,000.00 home with a 20% down payment, a 30-year mortgage, and an interest rate of 4.2%. Annual property taxes are $1920.00. Home insurance is $750.00 per year, which is to be placed into an escrow account.

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  • Bryce
    Lv 7
    1 month ago

    150,000 - 30,000= 120,000

    int= 0.042/12= 0.0035

    pmt= 120,000*0.0035/[1 - 1.0035^-360]= $586.82

    (1920 + 750)/12= 222.50

    monthly cost= 586.82 + 222.50= $809.32

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  • Judy
    Lv 7
    1 month ago

    How big of a mortgage would they need? Use one of the many calculators online to figure the principal and interest. Then add 1/12 of the annual taxes and insurance.

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