document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1033600>Question 1033600</A>: <I><SPAN STYLE=\"word-break: break-all;\"> 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?\r<BR>\n" );
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document.write( "Required down payment?<BR>\n" );
document.write( "Amount of the mortgage?<BR>\n" );
document.write( "Monthly payment?<BR>\n" );
document.write( "Total interest paid over 20 years? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #648274 by </B><A HREF=/tutors/aboutme.mpl?userid=addingup><B>addingup(3677)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=addingup><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=addingup><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=648274\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Down: 250,000*0.15 = 37,500<BR>\n" );
document.write( "2 points: 0.02*250,000 = 5,000<BR>\n" );
document.write( "Mortgage: 250,000-(37,500+5,000) = 207,500<BR>\n" );
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document.write( "Monthly payment (assuming the interest is compounded monthly): <BR>\n" );
document.write( "P = L[c(1+c)^n]/[(1+c)^n-1]<BR>\n" );
document.write( "where:<BR>\n" );
document.write( "P = your fixed monthly payment<BR>\n" );
document.write( "L = amount of the loan <BR>\n" );
document.write( "c = monthly interest rate (annual rate/12, in this case 0.065/12=0.00542)<BR>\n" );
document.write( "n = total number of months for the mortgage 20*12=240<BR>\n" );
document.write( "P = 207,500[0.00542(1+0.00542)^240]/[(1+0.00542)^240-1)=1,547.55<BR>\n" );
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document.write( "Total interest paid:<BR>\n" );
document.write( "1,547.55294*240 = 371,412.71-207,500 = 163,912.71<BR>\n" );
document.write( " </SPAN>\n" );
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