You want to purchase a home. cost $165,000. you have $40,000 downpayment. you want to finance rest at 3.5% for 15 years. how much will monthly mortgage be? How much in total will you pay over the 15 years even counting the downpayment? I came up with payment of $893.6 for first part. Again, I am not too sure if I am entering correctly into the calculator.
balance after downpayment = 125000
i = .035/12 = .002916666... (I stored in memory of calculator)
n = 180
125000 = paym (1 - 1.002916666..^-180)/.00291666
payment = 893.60 , you are correct.
take it from there, that was the hard part
to continue. it asks how much in total you will pay over the 15 years based on mortgage and down payment. I used the (893.60*12)(15)+40,000=200848.00. It then asks what portion of that is interest. I used the 200848.00FV 125000PV 180N with the I/YR=3.17%.
since we paid back a total of 200848 on the original loan of 165000, the difference, or 35848 must have been interest.
To calculate your monthly mortgage payment, you can use the following formula:
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1 ]
Where:
M = Monthly mortgage payment
P = Loan amount (original price of the home - down payment)
i = Monthly interest rate (annual interest rate / 12)
n = Total number of payments (number of years * 12)
First, let's calculate the loan amount (P):
Loan amount (P) = $165,000 - $40,000 = $125,000
Next, calculate the monthly interest rate (i):
Monthly interest rate (i) = 3.5% / 100 / 12 = 0.00291667
Now, calculate the total number of payments (n):
Number of years * 12 = 15 * 12 = 180
Using these values, you can now calculate the monthly mortgage payment (M):
M = $125,000 [ 0.00291667(1 + 0.00291667)^180 ] / [ (1 + 0.00291667)^180 – 1 ]
After performing the calculation, the monthly mortgage payment (M) comes out to approximately $892.37 (rounding to the nearest cent).
To calculate the total amount paid over 15 years, including the down payment, you can multiply the monthly mortgage payment by the total number of payments:
Total amount paid = Monthly mortgage payment * Total number of payments
Total amount paid = $892.37 * 180
Total amount paid = $160,626.60
Therefore, over the 15-year period, your total payment, including the down payment, would be approximately $160,626.60.