Spreadsheet Analysis: The initial price of a home is $200,000. To buy the home,

Question

Spreadsheet Analysis: The initial price of a home is $200,000. To buy the home, you made a 10% down payment. You took out a mortgage for 15 years at 6% (mortgage payments are made monthly). A personal mortgage insurance (PMI) is required on the mortgage since you put down less than 20% of the purchase price. PMI payments would cease when your equity is equal to or greater than 20 percent of the home value. Calculate your equity on the home AFTER 5 years, assuming that the value of your home has risen by 10 percent

$220,000

$180,000

$136,816.38

$83,183.62

$220,000

$180,000

$136,816.38

$83,183.62

Explanation / Answer

$136,816.38

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