Answer:
total monthly payment is $973.03
Step-by-step explanation:
given data
costs = $175,000
down payment = 10%
house value paid = 1.2%
to find out
monthly payment for a 30 year i.e 360 months
solution
we consider here rate of interest for 30 year is 4.25% so monthly interst rate will be [tex]\frac{0.0425}{12}[/tex] = 0.00375
so We have present value Ap = 0.9 ( 175000) = $157500
and the monthly escrow payment is
monthly escrow payment = [tex]\frac{1}{12}[/tex] × 0.012 × 175000
monthly escrow payment = $175
so monthly payment formula is
monthly payment = [tex]\frac{Ap*r}{1-(1+r)^{-n}}[/tex] ..................1
here r is rate and n is time period
so
monthly payment = [tex]\frac{157500*0.00375}{1-(1+0.00375)^{-360}}[/tex]
monthly payment = 798.03
so the payment to the loan is $798.03 each month
and Then the total monthly payment is = $798.03 + $175
total monthly payment is $973.03
