Answer:
$809.32
Step-by-step explanation:
The loan amount is 80% of $150,000, or $120,000. The monthly payment of principal and interest is $586.82.
The total annual expense for taxes and insurance is $1920 +750 = $2670, so the monthly expense is $2670/12 = $222.50.
Then the total of payments for mortgage and escrow will be ...
$586.82 +222.50 = $809.32
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The monthly P&I payment is given by ...
A = P(i/12)/(1 -(1 +i/12)^(-12t)) . . . . . where i is the annual interest rate, t is the number of years, and P is the amount financed.
A = $120,000(0.042/12)/(1 -(1 +0.042/12)^(-12·30)) ≈ $586.82
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A spreadsheet or financial calculator can be useful for calculating payments, though the formula isn't difficult to use.
