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How much cash will you need for a down payment in order to by the home?

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You want to purchase a beach house for $220,000 funding as much of the cost as possible with a home mortgage loan. Banks are currently offering standard thirty year mortgages at 8% (monthly compounding). Unfortunately, you can only afford payments of $1.500.00 per month. How much cash will you need for a down payment in order to by the home? (Round to the nearest dollar)

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Solution Summary

The solution determines how much of a cash down payment is needed in order to by a home.

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Value = 220,000

Monthly rate = 8%/12 = 0.667%
number of months = 30 ...

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