Suppose you obtain a 30-year mortgage loan of $191,000 at an annual interest rate of 8

Computation of Total Monthly Payment for the mortgage, property tax, and fire insurance:

First, We calculate Monthly Payment for the mortgage using PMT Function in Excel:

=pmt(rate,nper,-pv,fv)

Here,

PMT = Monthly Payment for the mortgage = ?

Rate = 8.2%/12 = 0.68% compounded monthly

Nper = 30 Years*12 = 360 Months

PV = $191,000

FV = 0

Substituting the values in formula:

=pmt(0.68%,360,-191000,0)

PMT or Monthly Payment for the mortgage = $1,428.21

Annual Property Tax Bill = $965

Annual Fire Insurance Premium = $498

Total Annual Payment = $965+$498 = $1,463

Monthly Payment = $1,463/12 = $121.92

Total Monthly Payment for the mortgage, property tax, and fire insurance = $1,428.21 + $121.92 = $1,550.13