House Appreciation and Mortgage Payments
Say that you purchase a house for $314,000 by getting a mortgage for $275,000 and paying a $39,000 down payment. If you get a 25-year mortgage with a 6 percent interest rate, what are the monthly payments? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
PMT $
What would the loan balance be in ten years? (Round the payment amount to the nearest cent but do not round any other interim calculations. Round your final answer to 2 decimal places.)
PVA $
If the house appreciates at 2 percent per year, what will be the value of the house in ten years? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
FV $
How much of this value is your equity? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
Equity $