Answer:
Current monthly payment on their existing mortgage would be $1158.66
Step-by-step explanation:
Total cash value = $160,000
Down payment = 10% of 160,000
Down Payment = $16,000
Balance amount = 160,000 - 16,000 = $144,000
Monthly payment formula:
[tex]P=\dfrac{r(PV)}{1-(1+r)^{-n}}[/tex]
where,
PV is present value of home, PV=$144,000
r is rate per period , [tex]r=\frac{9}{1200}=0.0075[/tex]
n is number of period, n=30x12 = 360
[tex]P=\dfrac{0.0075\times 144000}{1-(1+0.0075)^{-360}}[/tex]
[tex]P=\$ 1158.66[/tex]
Monthly payment would be same for 30 years.
Thus, Current monthly payment on their existing mortgage would be $1158.66
