Finding the Amount of a Mortgage

The Jacobs family is planning to buy a home. They see a home they like and compute that they would need to borrow $213,000 for a bank over a 30-year period. The APR is 6.75%. What will be their monthly mortgage payment?

You are buying a home and need to borrow $80,000. Your local bank has an APR of 6% on new mortgages. You are debating on whether you should take out a 15 year loan or a 30 year loan. How much more are you paying in interest with a 30 year loan?

Calculate the monthly payment with escrow:

Monthly Mortgage Payment: $735

Semi – Annual Property Tax: $2,457

Annual Homeowners Insurance: $790

The bank requires that the Andrew’s pay their homeowner’s insurance, property tax, and mortgage in one monthly payment to the bank. If their monthly mortgage payment is $1,711.22, their semi-annual property tax is $3,239, and their annual homeowner’s insurance bill is $980, how much do they pay the bank each month?

Allison has a mortgage with North End Bank. The bank requires that she pay her homeowner’s insurance, property tax, and mortgage in one monthly payment. Her monthly mortgage payment is $1,390, her semi-annual property tax is $3,222, and her yearly homeowner’s insurance is $1,128. How much does Allison pay North End Bank each month?

Frank is buying a new home that cost $98,900. He has been approved for a 15 year loan with an APR of 3.25%. The property taxes on this home are $1,098 semi-annually and his homeowners insurance will be $1,200 per year. What will be his monthly payment including an escrow?

The Smith’s want to buy a new home that cost $203,000. They have talked to a mortgage specialist and been approved for a 30 year loan with an APR of 5.15%. This homes property taxes are $4,560 semi-annually and their homeowners insurance will be $1,900 per year. What will be his monthly payment including an escrow?

Calculate the monthly payment with escrow:

Monthly Mortgage Payment: $562

Semi – Annual Property Tax: $966

Annual Homeowners Insurance: $1,800

Calculate the monthly payment with escrow:

Monthly Mortgage Payment: $842

Semi – Annual Property Tax: $1,500

Annual Homeowners Insurance: $975

What is escrow?

• Your monthly mortgage payment

• The money that banks collect from borrowers or homeowners insurance and property tax.

• The amount used to determine property tax

• The amount for which a house could be sold.