SOLUTION: You found your dream house. It costs $487000, and you put $50000 as a down payment. For the rest you get a 28-year 5% mortgage (with first payment due in one month). What will be y

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Question 1121288: You found your dream house. It costs $487000, and you put $50000 as a down payment. For the rest you get a 28-year 5% mortgage (with first payment due in one month). What will be your monthly mortgage payment? (Assume no early repayment.)
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
i used the following time value of money calculator.

it can be found at https://arachnoid.com/finance/

the results of the use of that calculator are shown below:

$$$

your inputs to this calculator are:

present value = 437000.

this is the purchase price of 487000 minus the 50000 down payment leaving 437000 that needs to be paid off by the mortgage.

future value = 0 because there should be no remaining balance in the account at the end of the mortgage period.

number of monthly periods = 28 years * 12 month per year = 336 monthly periods.

interest rate of 5% per year / 12 = monthly interest rate of .416667% per monthly period.

payments are to be made at the end of each month.

you click on PMT and the calculator tells you that the monthly payment is -2419.12 per month.

the present value is positive because it's money that you receive.

the payment is negative because it's money that you pay out.

your monthly payment is $2,419.12 per momth.