Answer:
Mortgage total is $387,400.11.
Step-by-step explanation:
Thee monthly mortgage monthly payment is first calculated using the following formula:
M = P * (r / (1 – (1 + r)^-n)) …………………………. (1)
Where;
M = monthly payment = ?
P = principal = Purchase price * (1 - Down payment percentage) = $225,000 * (1 - 15%) = $191,250
r = monthly interest rate = annual interest rate / 12 = 6.5% / 12 = 0.065 / 12 = 0.00541666666666667
n = number of months = 25 years * 12 months = 300
Substituting the values into equation (1), we have:
M = $191,250 * (0.00541666666666667 / (1 - (1 + 0.00541666666666667)^-300))
M = $191,250 * 0.00675207161347643
M = $1,291.33
Mortgage total can now be calculated as follows:
Mortgage total = Monthly payment * Number of years * Number of months in a year
Mortgage total = $1,291.33 * 25 * 12
Mortgage total = $387,400.11
Therefore, the mortgage total is $387,400.11.
