To calculate the monthly payment for a mortgage, we can use the formula for the fixed monthly payment on a loan:

$M = \frac{P \cdot r \cdot (1 + r)^n}{(1 + r)^n - 1}$

Where:

• $M$ is the monthly payment,
• $P$ is the loan amount ($290,000),
• $r$ 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).

Step 1: Define the variables

• Loan amount $P = 290,000$
• Annual interest rate $= 3.66\% = 0.0366$
• Monthly interest rate $r = \frac{0.0366}{12}$
• Number of payments $n = 30 \times 12 = 360$ (for a 30-year mortgage)

Step 2: Substitute the values into the formula

Let's calculate it.The monthly payment for the 30-year mortgage of $290,000 at 3.66% interest is approximately $1,328.27.

Would you like more details or have any questions? Here are some related questions to consider:

1. What happens to the payment if the interest rate changes to 4%?
2. How does a 15-year mortgage compare in terms of monthly payments for the same loan amount and interest rate?
3. What is the total amount paid over the life of the mortgage?
4. How does the loan balance decrease over time (amortization schedule)?
5. What are the advantages of making extra payments on the mortgage?

Tip: Making extra payments toward your mortgage principal can significantly reduce the total interest paid over the life of the loan.