Suppose that you want to purchase a home for $450,000 with a 30 year mortgage at 6% interest. Suppose that you can put 20% down. Assume that the monthly cost to finance $1,000 is $6.00. What are the monthly payments
Loan Amt.=450,000-0.2*450000= $360,000.
6/1000 = X/360000.
X = 360,000(6/1000) = $2160/mo.