Question

Whats the interests going to be for a mortgage thats 245,000 with a down payment of 44,000 & making a payment of

1205.11 monthly

Answer 1

The mathematical equation for calculating the monthly interest is

I = P * (r / n)

where:

I is the monthly interest

P is the loan amount minus the down payment (i.e., $245,000 - $44,000 = $201,000 in this case)

r is the annual interest rate (i.e., 3.5%)

n is the number of payments per year (i.e., 12 for monthly payments)

then I = $201,000 * (0.035 / 12) = $711.06