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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Skyler Mcintosh

26 April, 11:57

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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Patterson · Answer 1

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