After much searching, you have found your 'forever' house in Goose Creek. Priced at $500,000, the seller has insisted that serious buyers have to have 10% of the purchase price as a cash-in-hand down payment.  You have shopped around for mortgages and have found one that charges a 2.75% nominal rate for 30 years.  

What will be your monthly mortgage payment?  

How much interest and how much of the principle will you be paying off in the first month?

(USE THE GRID METHOD FOR DETERMINING THE MONTHLY PAYMENTS.)

Answer rating: 100% (QA)

To calculate your monthly mortgage payment you can use the formula for a fixedrate mortgage M Pr1rn ... View the full answer