asked 192k views
4 votes
You want to buy a $207,000 home. You plan to pay 10% as a down payment, and take out a 30 year loan for the rest.

a) How much is the loan amount going to be?

$

b) What will your monthly payments be if the interest rate is 6%?

$

c) What will your monthly payments be if the interest rate is 7%?

asked
User VLAZ
by
8.2k points

1 Answer

4 votes

You're basically copping a house for $207K. You're gonna front 10%, which is like $20.7K, so you still owe $186.3K. This is gonna be your loan. If the bank is charging you 6% interest, you gotta drop about $1.12K every month for 30 years to pay it off. But if the bank decides to be a bit extra and charge you 7%, then you're gonna be out of pocket around $1.24K every month for the same 30 years. It's like buying an iPhone, but way bigger and you can't upgrade every year.

answered
User Klhr
by
7.5k points
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