Question

Find the following for a $200,000 fixed-rate mortgage and the given informatic a) Monthly mortgage payment (principal and interest) b) Monthly house payment (including property taxes and insurance) c) Initial monthly interest d) Income tax deductible portion of initial house payment e) Net initial monthly cost for the home (considering tax savings) Annual Owner's Term of Interest Property Annual Income Tax Mortgage Rate Tax Insurance Bracket 15 years 5.5% $924 $504 3596 a) The monthly mortgage payment is $ (Round to the nearest doilar as needed.) b) The monthly house payment is (Round to the nearest dollar as needed.) c) The initial monthly interest is s (Round to the nearest dollar as needed.) d) The income tax deductible portion of the initial house payment is Round to the nearest dollar as needed.) e) The net initial monthly cost for the home is s DeRound to the nearest dolar as needed.

Answer 1

a	Monthly mortgage payment(interest and principal)	$     1,634
	EMI = [P x R x (1+R)^N]/[(1+R)^N-1],
	(200000*0.055/12*(1+0.055/12)^(15*12))/((1+0.055/12)^(15*12)-1)
b	Monthly house payment(including property tax and insurance)	$     1,753
	1634.17+924/12+504/12
c	Initial interest payment
	Principal	$ 200,000
	Monthly Interest rate % (5.5%/12)	0.004583
	Monthly Initial interest payment	$        917
d	Owner's income tax bracket	35.00%
	Saving on interest (917*35%)	$        321
	Income tax deductible portion of initial house payment (first month)	$        321
e	Net initial monthly cost for home (1753-321)	$     1,432