Calculate the monthly mortgage payment. Round to the nearest cent.

$110,000
$
⁢
110,000
is financed for 20
20
years at 5.25%
5.25
%
APR

To calculate the monthly mortgage payment, we will use the formula for a fixed-rate mortgage:

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

Where:
- $ M $ is the monthly payment
- $ P $ is the loan amount
- $ r $ is the monthly interest rate (annual interest rate divided by 12)
- $ n $ is the total number of payments (loan term in years multiplied by 12)

### Given:
- Loan amount $ P = 110,000 $
- Annual interest rate (APR) = 5.25% or 0.0525
- Loan term = 20 years

### Step-by-step:

1. **Convert annual interest rate to monthly interest rate**:
   \[
   r = \frac{0.0525}{12} = 0.004375
   \]

2. **Calculate the total number of payments**:
   \[
   n = 20 \times 12 = 240 \text{ months}
   \]

3. **Substitute values into the formula**:
   \[
   M = 110,000 \times \frac{0.004375(1+0.004375)^{240}}{(1+0.004375)^{240} - 1}
   \]

4. **Solve for $ M $**:
   \[
   M = 110,000 \times \frac{0.004375(1.004375)^{240}}{(1.004375)^{240} - 1}
   \]
   First, calculate $ (1.004375)^{240} \approx 2.789 $.

5. **Final calculation**:
   \[
   M = 110,000 \times \frac{0.004375 \times 2.789}{2.789 - 1}
   \]
   \[
   M \approx 110,000 \times \frac{0.0122}{1.789} \approx 110,000 \times 0.006822
   \]
   \[
   M \approx 750.42
   \]

### Final Answer:
The monthly mortgage payment is approximately **$750.42**.

---

Would you like more details or clarifications on the calculation? Here are some related questions to explore:

1. What happens if the interest rate increases to 6%?
2. How does a 15-year term affect the monthly payment for the same loan?
3. What is the total interest paid over the life of this loan?
4. How does the payment change if a down payment is made?
5. What would the monthly payment be if the loan amount was $150,000?

**Tip**: Lowering the loan term often increases monthly payments but reduces the total interest paid over time.

Calculate the monthly mortgage payment. $110,000 is financed for 20 years at 5.25% APR.

Learn how to calculate the monthly mortgage payment for a $110,000 loan over 20 years at an APR of 5.25%. This detailed step-by-step guide explains how to use the mortgage payment formula to find the answer, covering key financial concepts like interest rates and amortization schedules.

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