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Interest Rates Impact on House Purchase

If I have a home loan for $224,000.00 at a 8% variable monthly interest rate for 30 years what is my monthly payments and can you show me how you got it?

Also suppose I had to move within in one year and the interest payments over the first year were $17,852, would it be better to rent the property if it would cost me $1400.00/month plus utilities estimated at $220.00and renters insurance of $25 month.

Solution Preview

If I have a home loan for $224,000.00 at a 8% variable monthly interest rate for 30 years what is my monthly payments and can you show me how you got it?

The monthly payment is an annuity, which is a series of equal payments made at fixed intervals for a specified number of periods.

You can find it by the annuity equation as follows: -

PVA = W x 1 - 1 where PVA is the present value
(1 + i)n W is the amount required monthly
i i is the interest rate
n is ...

Solution Summary

This solution is comprised of a detailed explanation to calculate monthly payments for home loan and answer would it be better to rent the property if it would cost me $1400.00/month plus utilities estimated at $220.00and renters insurance of $25 month.

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