Question

Anna is buying a house selling for $285,000. To obtain the mortgage, Anna is required to make a 15 % down payment. Anna obtains a 25 -year mortgage with an interest rate of 5 %. Click the icon to view the table of monthly payments.
a) Determine the amount of the required down payment.
b) Determine the amount of the mortgage.
c) Determine the monthly payment for principal and interest.
a) Determine the amount of the required down payment.

Answer 1

a) The amount of the required down payment is $42,750.

b) The mortgage amount after the down payment is $242,250.

c) The monthly payment for both principal and interest is $1,416.17.

What is the down payment?

The down payment refers to the upfront cash payment made to reduce the cost of the home.

After deducting the down payment from the home price the result is the loan amount.

Monthly payments pay part of the loan amount the computed interest.

The monthly payments and the down payment can be determined with an online finance calculator.

Home Price = $285,000

Down Payment = 15%

Loan Term = 25 years

Interest Rate = 5%

Monthly Pay:   $1,416.17

Loan Amount $242,250 ($285,000 - $42,750)

Down Payment = $42,750 ($285,000 x 15%)

Total of 300 Mortgage Payments = $424,851 ($1,416.17 x 300)

Total Interest = $182,601

Thus, after making a down payment of $42,750 cash, Anna will be making monthly payments of $1,416.17 for 300 months.

Learn more about monthly payments and down payments at brainly.com/question/1698287

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