We will use the given mortgage formula to calculate the monthly payment:

$PMT = \frac{P \left(\frac{r}{n}\right)}{1 - \left(1 + \frac{r}{n}\right)^{-nt}}$

where:

• $P = 127,200$ (loan amount after down payment)
• $r = 10\% = 0.10$ (annual interest rate)
• $n = 12$ (number of payments per year)
• $t = 30$ (loan term in years)

Now, let's compute the monthly payment. Given values P = 127200 # Loan amount r = 0.10 # Annual interest rate (10%) n = 12 # Monthly payments per year t = 30 # Loan term in years

Monthly interest rate

r_n = r / n

Total number of payments

nt = n * t

Mortgage payment calculation using the formula

PMT = (P * r_n) / (1 - (1 + r_n) ** -nt)

Round to the nearest dollar

PMT_rounded = round(PMT) PMT_roundedThe monthly payment (excluding escrowed taxes and insurance) is $1,116.

Would you like a breakdown of the calculation or have any questions?

Related Questions:

1. How would the monthly payment change if the interest rate were 8% instead of 10%?
2. What is the total amount paid over the life of the loan?
3. How much total interest is paid over 30 years?
4. How would a 15-year loan affect the monthly payment?
5. What would the mortgage payment be if the home price were $200,000 instead?

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