If my monthly mortgage payments for a house that costs $132, 905. The terms of your mortgage are 7%/a compunded semi-annually for 25 years
You did not begin with a sentence and did not aske a question.
Are you asking for what the payment would be? I have never heard of "compounding" a mortgage semiannually when the payments are made monthly. Does that mean the principal gets reduced only twice a year even though payments are made monthly? It sounds crazy, but good for the bank.
Was there a down payment?
ok so the house costs $139,900.00. My dowwn payment is non-conventional which is which is %5 and that is $6995.
And the question is Calculate your monthly mortgage payments for the remaining cost of the house. The terms of your mortgage are 7%/a compunded semi-annually for 25 years.
i tired to solve it and this is what i got..
M= P[i(1+i)n/(1+i)n-1]
and when i put in the numbers in i got 132905(0.35)= 46516.75
Now i don't know wat that is, is that the montly mortgage or the semi anually.
Traditionally, mortgage rates in Canada are quoted as compounded semiannually, but payments are made monthly and the interest is calculated monthly.
so we have to calculate the equivalent monthly interest rate
(1+i)^12 = (1.035)^2
1 + i = 1.035^(1/6) = 1.00575
i = .00575
so
(139900-6995) = paym(1 - 1.00575^-300)/.00575
(I got $930.88)
if i put in 25% down payment to the house which is $34975 and the cost of the house will be $104925, Then wat would the mortgage be monthly?
change the left side of my equation from
(139900-6995)= ... to
(139900-34975) = ...
I did not realize that Canadians use semiannual compounding (principal reduction) of mortgages with monthly payments. I used the formula shown at
http://en.wikipedia.org/wiki/Amortization_schedule
and did it that way. I computed that the amount paid every six months, fifty times, has to be $5666.23. This amounts to a monthly payment of $944.37.
To calculate your monthly mortgage payments, you can use the formula for calculating mortgage payments. The formula is:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Where:
M = Monthly mortgage payment
P = Principal amount (loan amount)
i = Monthly interest rate
n = Number of payments
Let's break down the information provided to calculate the monthly mortgage payments:
Principal amount (loan amount): $132,905
Interest rate: 7% compounded semi-annually
Number of payments: 25 years (since interest is compounded semi-annually, we need to convert this to the number of semi-annual periods)
First, let's calculate the monthly interest rate:
Since the interest is compounded semi-annually, we need to find the semi-annual interest rate. We can obtain it by dividing the annual interest rate by 2.
Semi-annual interest rate = 7% / 2 = 3.5% (0.035 in decimal form)
Next, we need to calculate the number of semi-annual periods:
Since the mortgage term is 25 years and interest is compounded semi-annually, we have 25 x 2 = 50 semi-annual periods.
Now, let's calculate the monthly mortgage payment using the formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1 ]
Substituting the values:
M = $132,905 [ 0.035(1 + 0.035)^50 ] / [ (1 + 0.035)^50 - 1 ]
Calculating this expression will give you the monthly mortgage payment for the given scenario.