One year ago, Jamie purchased a house valued at $480,000. To avoid the insurance (PMI), she...

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One year ago, Jamie purchased a house valued at $480,000. To avoid the insurance (PMI), she...

One year ago, Jamie purchased a house valued at $480,000. To avoid the insurance (PMI), she decided to pay down 21%. She got a 30-year fully amortized fixed rate mortgage at 4.75% interest rate and her closing costs and discount points were about $5,600 (around 1.5% of loan amount).

1. What is Jamie’s monthly payment?

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Answer 1

Answer #1

n=	360	(30 years times 12 monthly payments per year)
i=	0.004	(4.75 percent annually expressed as .0475, divided by 12 monthly payments per year)
D=	191.7004
Loan amount Calculation
Cost of the asset		480000
DP (21%)		100800
Loan amount		379200

PMI		1978

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Answer 2

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