What would be your mortgage payment if you pay for a $250,000 home by making a 20% down payment and then taking out a 3.74% thirty year fixed rate mortgage loan to cover the remaining balance

$925.097.                    

Step-by-step explanation:

We  will use EMI formula to answer our problem.

, where,

E is EMI.

P= Principal loan amount.

r= the rate of interest calculated on monthly basis.

We need to figure out our principal loan amount before using this formula. We are told that we have to pay 20% of $250,000 as down payment, therefore our principal loan amount will be 80% of $250,000.

Now let us use EMI formula to find our mortgage payment.

Therefore, the mortgage payment to cover remaining balance in 30 years will be $925.097 per month.

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