Since you are putting LESS than 20% down, you will need to pay PMI (Private Mortgage Insurance), which tends to be about $55 per month for every $100,000 financed (until you have paid off 20% of your loan). This could add to your monthly payment.
Monthly Payment $991.16
01.
The down payment = The price of the home multiplied by the percentage down divided by 100 (for 5% down becomes 5/100 or 0.05)
$15,000.00 = $150,000.00 X (10 / 100)
02.
The interest rate = The annual interest percentage divided by 100
0.07 = 7% / 100
03.
The monthly interest rate = The annual interest rate divided by 12 (for the 12 months in a year)
0.00583333333333 = 0.07 / 12
04.
The month term of the loan in months = The number of years you’ve taken the loan out for times 12
360 Months = 30 Years X 12
05.
The montly payment is figured out using the following formula:
Monthly Payment = 13500000 * (00058 / (1 - ((1 + 00058) -(360))))
The amortization breaks down how much of your monthly payment goes towards the bank’s interest, and how much goes into paying off the principal of your loan
