What is your monthly mortgage payment on a loan for $150,000, at 6% for 20 years?
I used my TI-83....
N=20*12
I%=6%/12
PV=150,000
PMT=0
FV=0
PMT=-1074.646 FINAL ANSWER IS ...$1074.65 per month
the negative sign represents a cash outflow
Yes. Your answer agrees with the answer given in this site.
http://www.bankrate.com/brm/mortgage-calculator.asp?unroundedPayment=1074.6465877172593&loanAmount=150000.00&nrOfYears=20&nrOfMonths=240&interestRate=6.00&startMonth=6&startDay=25&startYear=2008&monthlyPayment=1074.65&monthlyAdditional=0&yearlyAdditional=0&yearlyAdditionalMonth=6&oneAdditional=0&oneAdditionalMonth=6&oneAdditionalYear=2008&paidOffDate=Jul+25%2C+2028&submit.x=42&submit.y=6
To calculate your monthly mortgage payment, you can use the formula for calculating the payment on a loan. The formula is:
PMT = (P × r) / (1 - (1 + r)^(-n))
Where:
PMT is the monthly mortgage payment
P is the principal amount of the loan (in this case, $150,000)
r is the monthly interest rate (6% divided by 12, or 0.06 / 12)
n is the total number of monthly payments (20 years times 12 months, or 20*12)
Using the formula, you would input the values:
P = $150,000
r = 0.06 / 12
n = 20 * 12
By substituting these values into the formula, you would get:
PMT = (150000 × (0.06 / 12)) / (1 - (1 + (0.06 / 12))^(-20*12))
Now, let's do the math:
PMT = (150000 × 0.005) / (1 - (1 + 0.005)^(-240))
≈ 1074.647
Rounded to the nearest cent, your monthly mortgage payment would be approximately $1074.65. Keep in mind that this calculation is an estimate and does not include additional expenses like property taxes and insurance.