What is the monthly house payment on a 10-year $210,000 mortgage at a 7% annual interest rate?

To determine the monthly house payment on a 10-year mortgage of $210,000 at a 7% annual interest rate, we apply the formula for a fixed-rate mortgage, which is based on the principal amount, the interest rate, and the total number of payments.

The formula for a monthly mortgage payment (M) is:

[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} ]

Where:

• ( P ) is the loan amount (principal),
• ( r ) is the monthly interest rate (annual rate divided by 12),
• ( n ) is the total number of payments (loan term in months).

In this case:

• The loan amount ( P ) is $210,000.
• The annual interest rate is 7%, which translates to a monthly interest rate of ( 0.07 / 12 = 0.0058333 ).
• The loan term is 10 years, so ( n ) is ( 10 \times 12 = 120 ) months.

Plugging these values into the formula:

1. Calculate the monthly payment ( M ):

[ M = 210,