The link to the home I will be using is http://www.zillow.com/homes/for_sale/41830186_zpid/4-_beds/36.737371,-87.192822,36.501771,-87.561893_rect/11_zm/6_sch/.

This home is $20,000.00 to be financed at 80% of the purchase price. The purchase price is $20,000.00 and 6the interest rate is at 5%

To find the interest rate

20,000 x 5%= 20,000x0.05= $1,000.

The Formula is monthly mortgage= amount financed x table value

$100

Determining the payment if we had a 15 year mortgage we would again use the formula monthly mortgage= amount financed x table value $1000

To find the table value, we will use the table in the book and look for 5% Annual interest and 15 years. Which is 15.82.

Monthly mortgage = 1000 x 15.92 100

1000

100= 10 x 15.92= $150.92*…show more content…*

To calculate the PITI payment:

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

2) The monthly taxes are determined by considering the purchase price of $20,000 x 5% = $1000 yearly. Divide $1000 by 12 (the number of months in a year.) to find monthly taxes. 1000/12= 83.33, which is the monthly taxes.

3) The sum of the monthly principal, interest, and taxes

1150.92+83.33+100.00=

This home is $20,000.00 to be financed at 80% of the purchase price. The purchase price is $20,000.00 and 6the interest rate is at 5%

To find the interest rate

20,000 x 5%= 20,000x0.05= $1,000.

The Formula is monthly mortgage= amount financed x table value

$100

Determining the payment if we had a 15 year mortgage we would again use the formula monthly mortgage= amount financed x table value $1000

To find the table value, we will use the table in the book and look for 5% Annual interest and 15 years. Which is 15.82.

Monthly mortgage = 1000 x 15.92 100

1000

100= 10 x 15.92= $150.92

To calculate the PITI payment:

1) Establish the principal and interest amount of the monthly payment. Using the 30 year loan principal and interest amount of the payment is $1,150.92

2) The monthly taxes are determined by considering the purchase price of $20,000 x 5% = $1000 yearly. Divide $1000 by 12 (the number of months in a year.) to find monthly taxes. 1000/12= 83.33, which is the monthly taxes.

3) The sum of the monthly principal, interest, and taxes

1150.92+83.33+100.00=

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