You want to buy a $146,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 4.35% interest for the rest.

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

$


b) What will your monthly payments be?

$


c) How much of the first payment is interest?

$


Let's break this down step by step.

### a) Loan Amount

You are paying **15%** as a down payment on the house, which costs **$146,000**.

The loan amount will be the remaining **85%** of the home value, as you are not borrowing the amount you pay as a down payment.

\[
\text{Loan amount} = 146,000 \times \left( 1 - 0.15 \right) = 146,000 \times 0.85
\]

Let me calculate the loan amount.

\[
\text{Loan amount} = 124,100
\]

So the loan amount is **$124,100**.

### b) Monthly Payment

For a fixed-rate mortgage, the formula to calculate the monthly payment is:

\[
M = P \times \frac{r(1+r)^n}{(1+r)^n - 1}
\]

Where:
- $M$ is the monthly payment.
- $P$ is the loan amount (**$124,100**).
- $r$ is the monthly interest rate (annual rate divided by 12).
- $n$ is the number of monthly payments (30 years $\times$ 12 months per year).

Given:
- Interest rate = **4.35%** per year, so monthly interest rate $r = \frac{4.35\%}{12} = 0.003625$.
- Number of payments $n = 30 \times 12 = 360$.

Let me calculate the monthly payment now.

### c) Interest on First Payment

The interest portion of the first payment is calculated as:

\[
\text{Interest on first payment} = \text{loan amount} \times r
\]

Let's also compute that. I'll do both calculations now.### b) Monthly Payment

The monthly mortgage payment will be approximately **$617.78**.

### c) Interest on First Payment

The interest portion of the first payment will be approximately **$449.86**.

---

Would you like more details on any part of this process or explanation? Here are five follow-up questions that might interest you:

1. How does the loan term affect the monthly payments?
2. What happens if the interest rate increases by 1%?
3. How much of the loan will be paid off after 10 years?
4. What is the total interest paid over the life of the loan?
5. How much more will you pay if the down payment is reduced to 10%?

**Tip**: The earlier payments of a loan are mostly interest, but as you pay down the principal, a larger portion of each payment goes toward the principal over time.

You want to buy a $146,000 home. You plan to pay 15% as a down payment, and take out a 30 year loan at 4.35% interest for the rest.

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

 b) What will your monthly payments be?

 c) How much of the first payment is interest?

Find out how to calculate the loan amount, monthly payments, and the interest on the first payment for a $146,000 home with a 15% down payment and a 30-year mortgage at 4.35% interest. Learn the step-by-step solution using mortgage payment formulas.

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