Answer:
Explanation:
1. Mortgage table
Find attached a sample of a mortgage table per 1,000 dollars borrowed.
You have to use the number in the intersection of the row for 5.25% interest and the column for 20 years.
The number is $6.74.
That means that, for every $1,000 borrowed for 20 years at 5.25% interest you will pay $6.74 every month.
2. Amount borrowed
You will make a 22% down payment:
[tex]22\%\times \$ 426,000=\$ 93,720[/tex]
Thus the amount borrowed is $426,000 - $93,720 = $332,280
3. Monthly payment
Multiply the monthly payment per 1,000 by the amount borrowed divided by 1,000:
[tex]\$ 6.74\times 322,280/1,000=\$ 2,239.57[/tex]
4. Total monthly payments:
Multiply the number of payments by the monthly payment.
Number of payments = 20 years × 12 payments /year = 240 payments.
[tex]\$ 2,239.57\times 240=\$ 537,496.13[/tex]
5. Total payment for the home.
The total payment for the home will be the down payment plus the amount paid to the bank:
