Current mortgage rates are 7.5%. Interest is compounded monthly and all payments are due at the end of the month. What is the monthly mortgage payment?

To determine this amount, the formula to use is: Payment = Principal x Interest Rate / (1 – (1 + Interest Rate) ^ -n ) where n = number of months in the loan term. In this case, n = 360 since it is a 30-year loan with 12 months per year.

Plugging these values into the equation gives us: Payment = 200,000 x 0.075/ (1-(1+0.075) ^ -360). This equates to a Monthly Payment of $1330 and a total cost over the life of the loan to be approximately $477,845 after paying an estimated total of about $277,845 in interest over those 30 years.

Making sure that your mortgage payment fits comfortably within your budget is essential when buying a home so additional costs such as taxes and insurance should also be taken into consideration when deciding on how much you can afford to borrow for your new house purchase. It’s always wise to get pre-approved for a mortgage prior to searching for any properties so you have an idea of what type and size property you can realistically afford before falling in love with something that’s out of reach financially.