Answer:
The total loan payment is:is $1,024,050
Step-by-step explanation:
To know the total cost of this loan we must sum the the purchasing the mortgage loan LM and the PMI:
L=LM+PMI
The 30-year mortgage loan of $205,000 at 5.5% interest rate can be calculated as:
LM=$205,000*(1+0.055)^30
LM=$205,000*4.984 = $1,021,710
Then for the PMI over 24 months:
PMI: $97.5* 24 = $2,340
Therefore the total loan payment is:
L= $1,021,710 + $2,340 = $1,024,050