What is the interest rate on a 30-year fixed mortgage for a loan of
$120,000? Monthly payment is $700. I'm not sure what the compounding
is....please calculate for what is most common in the home loan world.
Show me how you arrive at the answer.
The Grammaton Cleric
P.s. An answer within an hour of posting derives a tip. |
Request for Question Clarification by
revbrenda1st-ga
on
06 Feb 2004 10:48 PST
Hi, grammatoncleric,
You mention a monthly payment of $700. Does that payment include
interest and fees such as insurance, or is it just the monthly
principal payment?
Thanks,
revbrenda
|
Request for Question Clarification by
revbrenda1st-ga
on
06 Feb 2004 11:18 PST
Hi again,
Also, can you tell me if $700 is the actual payment or a rounded off
figure? I have a rate for a monthly payment of $699.91.
Thanks,
revbrenda
|
Clarification of Question by
grammatoncleric-ga
on
06 Feb 2004 13:00 PST
Hi Revbrenda,
So, this question is entirely theoretical. I have actual numbers
which are not so round as 120K and $700. Rather, I'm looking for some
equations. Use $700.00 exactly and provide me a way of doing this
myself.
GC
|
Request for Question Clarification by
revbrenda1st-ga
on
06 Feb 2004 13:55 PST
Sorry, grammatoncleric,
I understand now what you need. Mathematics is not my strong suit --
indeed, as the saying goes, "I'd rather eat bark" than do math.
However, I was raised to believe that there is more than one way to
skin a cat. I found an on-line tool which allows me to enter the total
mortgage over a 30 year period and from the calculator, find the
monthly payment and rate of interest for this loan. After my last
clarification request I was able to fine tune the percentage with a
monthly rate of $699.98. I can't seem to get an exact $700 payment.
I'm sure one of our other researchers can figure it out and come up
with a workable equation for you.
I wish you well,
revbrenda
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