Question

Jordan bought a $300,000 house, paying 10% down, and getting a 30 year loan with 3% interest for the remaining amount.

How much is the loan amount going to be?
What will her monthly payments be?
How much interest will she pay over the life of the loan?

Answer 1

The down payment that Jordan made on the house was $300,000 x 10% = $30,000. So, he financed $300,000 - $30,000 = $270,000.

where

M = monthly payment

P = loan amount ($270,000)

r = monthly interest rate (3% / 12 months = 0.003)

n = number of payments (30 years x 12 months/year = 360)

This comes out to a monthly payment of approximately $1,173.38.

To simplify

The loan amount is- $270,000

Her monthly payment will be- $1,173.38

The amount of interest she will pay is- $8,100