finance mortgage payment
posted by allen on .
Purchase a home for $160,000. I intend to put down 20% and finance the remainder over 15 years at 6 3/8% interest. If my taxes & insurance totals $3,600 per year, how much will my total monthly payment be?
I will calculate the mortgage payment first, since I don't know how your jurisdiction handles taxes and insurance.
20% down leaves you with 80% of 160 000 or $128 000
i = .06375/12 = .0053125
n = 15*12 = 180
128 000 = paym[ 1 + 1.0053125^-180]/.0053125
payment = $1106.24
monthly taxes (if no interest is involved by simply dividing it by 12) = 3600/12 = 300
so your monthly payment would be sum of those two
Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at interest?