You are purchasing a house and will get a mortgage loan of$476,442. The mortgage loan will be fully amortizing over 19 years, with monthly payments and an annual interest rate of 8.0%. What is the monthly payment?

To calculate the monthly payment on the mortgage, we use the formula for the monthly payment of a fully amortizing loan:

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

Where:
- $ M $ = monthly payment
- $ P $ = principal loan amount = $476,442
- $ r $ = monthly interest rate = $\frac{8\%}{12} = 0.08/12 = 0.0066667$
- $ n $ = total number of payments = 19 years $\times 12$ months/year = 228 months

Let's calculate the monthly payment.The monthly payment for the mortgage loan is approximately **$4,071.20**.

Would you like more details or have any questions? 

Here are 5 related questions you might find helpful:
1. How is the total amount paid over the life of the loan calculated?
2. What is the difference between a fully amortizing loan and an interest-only loan?
3. How does a change in the interest rate affect monthly payments?
4. What happens if you make extra payments towards the principal?
5. How do taxes and insurance affect the monthly mortgage payment?

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

You are purchasing a house and will get a mortgage loan of $476,442. The mortgage loan will be fully amortizing over 19 years, with monthly payments and an annual interest rate of 8.0%. What is the monthly payment?

Learn how to calculate the monthly payment for a $476,442 mortgage with an 8% annual interest rate, fully amortizing over 19 years. This guide explains the amortization formula and includes step-by-step instructions for solving the problem. Suitable for advanced high school students or college learners.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation