Answer:
Monthly mortgage payment = $1736.2
Explanation:
The cash paid down is = 20% × $329,000 = 65,800
The balance to paid in mortgage arrangement is equal to
$329,000 - $65,800 = 263200
To work out the monthly installment we divide the balance by the monthly annuity factor
Monthly payment = $263,200/ monthly annuity factor
Monthly annuity factor = ((1 - (1+r)^(-n))/r)
r - monthly interest rate, n- number of months.
r = 6.25%/12 = 0.521%
n = 25 × 12 = 300
Monthly annuity factor = (1- (1.0052)^(-300))/0.0052
= 151.5910
Monthly mortgage payment
= $263200/151.5910
= $1736.2
Monthly mortgage payment = $1736.2
