Question

Ben and Carla Covington plan to buy a condominium. They will obtain a $229,000, 20-year mortgage at 5.0 percent. Their annual property taxes are expected to be $1,550. Property insurance is $630 a year, and the condo association fee is $250 a month. Based on these items, determine the total monthly housing payment for the Covingtons

Answer 1

Answer: $1942.98

Explanation:

GIVEN THE FOLLOWING ;

20years mortgage at 5%=$229,000

Annual property tax = $1,550

Annual property insurance = $630

Monthly association fee = $250

Total Monthly Housing payment can be calculated by

Equated Monthly Installment(EMI) on mortgage at 5% :

[PV ÷ (1-(1-rate)^-n)÷n]

Period(n) = 12×20 = 240

PV = $229,000

Rate(r) = 0.05 / 12 = 0.0041667

EMI = $1,511.31

Monthly property tax =$1550/12 = $129.16

Monthly property insurance = $630/12 = $52.5

Monthly association fee = $250

Total Monthly payment = $(1511.31 + 129.17 + 52.5 + 250) = $479.38

The Covington's Monthly payment is $1942.98

Answer 2

Answer:

$1,943.06

Explanation:

Monthly mortgage payment: $6.6 X $229 = $1,511.4

Monthly property taxes: $1,550/12 = $129.16

Monthly property insurance: $630/12 =$52.5

Monthly association fee: $250

Total monthly housing payment: $1,943.06