Rebecca is purchasing a house for $210,000, with a 15-year fixed-rate mortgage at 4.5% interest. She has made a 5% down payment.
2 answers:
Solution:
Cost of the house with a 15-year fixed-rate mortgage at 4.5% interest= $ 210,000
Actual cost of house = $ 198,000
Down payment made by Rebecca
=5 % of $ 198,000
$
Local tax paid by Rebecca = 4.5 % of $ 198,000
$
Homeowners insurance per year made by Rebecca= $ 840
Total interest paid = $ 210,000 - $ 198,000
= $ 12,000
She will pay this money in 15-years at fixed-rate mortgage of 4.5% interest.
Money that Rebecca will pay at the end of each year
Mortgage rate = (4.5 % of 198,000) Per yearly
$ yearly
Total money that Rebecca has to pay after each passing year = 9,900+8,910+840+800+8910=$ 29,360
Amount that Rebecca has to pay monthly=
$
Option (A) $2437.20 appears appropriate.
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