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30 August, 23:24

If I purchase a home for $150,000. I do a fixed 30-year mortgage at 6%. I have to put down 10%. What would be my annual payment? Answer: $6,456.72 Answer: $9,376.24 Answer: $9,712.72 Answer: $12,345.67

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  1. 30 August, 23:29
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    Annual payment $9,712.72

    Explanation:

    Loan Amount = Cost of home - down payment

    Loan amount = 150,000 - (10% * 150,000) = 135,000

    Monthly payment = Loan Amount/Annuity factor

    Annuity factor = (1 - (1+r) ^ (-n)) / r

    r - monthly interest rate, n - number of months

    Monthly interest rate = 0.5%

    Number of months = 30 * 12 = 360 months

    Annuity factor = (1 - (1+0.005) ^ (-360)) / 0.005 = 166.7916144

    Monthly payment = Loan Amount/Annuity factor

    Monthly payment = 135,000 / 166.79=809.393209

    Annual payment = Monthly payment * 12

    Annual payment = 809.39 * 12 = 9,712.718

    Annual payment $9,712.72
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