use the mortgage calculator in the window you opened at the beginning of this activity to calculate the following:

nicole is buying a house for $275,000. she has a down payment of $35,000. her interest rate is 3.05%, a property tax of $1,250 a year, and she is doing a 30-year mortgage. how much will her monthly payment be? put pmi as 0.5% and property insurance as $1,000 per year.

Question

use the mortgage calculator in the window you opened at the beginning of this activity to calculate the following:

nicole is buying a house for $275,000. she has a down payment of $35,000. her interest rate is 3.05%, a property tax of $1,250 a year, and she is doing a 30-year mortgage. how much will her monthly payment be? put pmi as 0.5% and property insurance as $1,000 per year.

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "explain_then_answer", "quick" ], "needs_drawing": false, "concepts_used": [], "new_concepts": [ "Mortgage Calculation", "PITI Payment", "Private Mortgage Insurance" ], "current_concepts": [ "Mortgage Calculation", "PITI Payment", "Private Mortgage Insurance" ] } ## Calculate the loan principal and monthly interest rate $$ \begin{aligned} P &= \text{Home Price} - \text{Down Payment} = 275{,}000 - 35{,}000 = 240{,}000 \ r &= \frac{3.05\%}{12} = \frac{0.0305}{12} \approx 0.00254167 \ n &= 30 \times 12 = 360 \end{aligned} $$ ## Calculate the monthly principal and interest (P&I) payment $$ \begin{aligned} M_{\text{P\&I}} &= P \frac{r(1+r)^n}{(1+r)^n - 1} \ M_{\text{P\&I}} &= 240{,}000 \frac{0.00254167(1.00254167)^{360}}{(1.00254167)^{360} - 1} \approx 1{,}018.45 \end{aligned} $$ ## Calculate monthly taxes, insurance, and PMI to find the total monthly payment $$ \begin{aligned} \text{Monthly Property Tax} &= \frac{1{,}250}{12} \approx 104.17 \ \text{Monthly Property Insurance} &= \frac{1{,}000}{12} \approx 83.33 \ \text{Annual PMI} &= 240{,}000 \times 0.5\% = 1{,}200 \implies \text{Monthly PMI} = \frac{1{,}200}{12} = 100.00 \ \text{Total Monthly Payment} &= 1{,}018.45 + 104.17 + 83.33 + 100.00 = 1{,}305.95 \end{aligned} $$ $1{,}305.95$ { "subject": "Mathematics", "question_type": "Fill-in-the-blank", "knowledge_point": [ "Mathematics", "Algebra", "Mortgage Calculation" ] }

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QUESTION IMAGE

Question

Explanation:

Calculate the loan principal and monthly interest rate

Calculate the monthly principal and interest (P&I) payment

Calculate monthly taxes, insurance, and PMI to find the total monthly payment

Answer: