SOLUTION: The price of home is $250,000, 15% downpayment, 2 points at time of closing, 20 year fixed, and rate is 6.5, what is? Required down payment? Amount of the mortgage? Monthly pa

Question 1033600: The price of home is $250,000, 15% downpayment, 2 points at time of closing, 20 year fixed, and rate is 6.5, what is?
Required down payment?
Amount of the mortgage?
Monthly payment?
Total interest paid over 20 years?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
Down: 250,000*0.15 = 37,500
2 points: 0.02*250,000 = 5,000
Mortgage: 250,000-(37,500+5,000) = 207,500
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Monthly payment (assuming the interest is compounded monthly):
P = L[c(1+c)^n]/[(1+c)^n-1]
where:
P = your fixed monthly payment
L = amount of the loan
c = monthly interest rate (annual rate/12, in this case 0.065/12=0.00542)
n = total number of months for the mortgage 20*12=240
P = 207,500[0.00542(1+0.00542)^240]/[(1+0.00542)^240-1)=1,547.55
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Total interest paid:
1,547.55294*240 = 371,412.71-207,500 = 163,912.71

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