You want to buy a $218,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan for the rest.

Question

a) How much is the loan amount going to be?

b) What will your monthly payments be if the interest rate is 5%?

c) What will your monthly payments be if the interest rate is 6%?

Answer 1

a) The loan amount will be .95 x $218,000 = $207100

b) The 5% monthly payment will be $1,107.14

c) The 6% monthly payment will be $1,235.49