Answer:
Current monthly payment on their existing mortgage would be $1158.66
Step-by-step explanation:
Total cash value = $160,000
Down payment = 10% of 160,000
Down Payment = $16,000
Balance amount = 160,000 - 16,000 = $144,000
Monthly payment formula:
![P=\dfrac{r(PV)}{1-(1+r)^{-n}}](https://tex.z-dn.net/?f=P%3D%5Cdfrac%7Br%28PV%29%7D%7B1-%281%2Br%29%5E%7B-n%7D%7D)
where,
PV is present value of home, PV=$144,000
r is rate per period , ![r=\frac{9}{1200}=0.0075](https://tex.z-dn.net/?f=r%3D%5Cfrac%7B9%7D%7B1200%7D%3D0.0075)
n is number of period, n=30x12 = 360
![P=\dfrac{0.0075\times 144000}{1-(1+0.0075)^{-360}}](https://tex.z-dn.net/?f=P%3D%5Cdfrac%7B0.0075%5Ctimes%20144000%7D%7B1-%281%2B0.0075%29%5E%7B-360%7D%7D)
![P=\$ 1158.66](https://tex.z-dn.net/?f=P%3D%5C%24%201158.66)
Monthly payment would be same for 30 years.
Thus, Current monthly payment on their existing mortgage would be $1158.66