You wish to buy a house for $350,000 Bank of Saratoga offers you a 30-year loan with equal monthly payments at 6.3% per annum provided you put a 10% as down payment at the time of closing. What would be your monthly periodic annuity payments (principal + interest) to the nearest $? Hint: Calculate the monthly mortgage payment (annuity payment) using the loan payment formula:

PMT = (PVA * i/n) / [1-(1+i/n)^-nt]

Where:

PMT = monthly mortgage (annuity) payment

PVA = present value of annuity (loan amount = purchase price - down payment)

I = monthly interest rate (annual APR divided by 12)

N = total number of payments per years

T = total number of payments (loan term in years * 12)

You are given the following information:

Purchase price = $350,000

Down payment = 10% of $350,000 = $35,000

Loan payment (PVA) = $350,000 - $35,000 = $315,000

Annual interest rate = 6.3%

Loan term (t) = 30 years

Monthly interest rate (i) = 6.3% / 12 / 100 = 0.00525

Required to calculate monthly mortgage payments.