# In a mortgage, which is the sum of the bank?

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I take a class and we find mortgages and loans and everything else fun. However, our teacher does not really teach! I have no idea how to get a correct answer to bekommen.Nach monthly mortgage payments, property taxes, insurance, etc. We have the following question … “What is the total amount in the bank for loans to send?” I assume that the amount they took, first, interest charges and acquisition costs (installation costs and discount). But it is also the insurance of property taxes and home, too? I sent my professor and asked him several times, of course, but he never e-mails zurück.Info-house \$ 190,000, \$ 18,000 down payment, borrowed \$ 172,000, the rate of 6.3% annually for 30 years, \$ 3440 due at the end, 903 million monthly mortgage payments, property taxes \$ 237.50/month, \$ 47.91/month Hausratversicherung.Was is the total amount of “send to the bank” with above information? Just please tell me how to get there and I’ll think it works. THANK YOU!

5 Thoughts on In a mortgage, which is the sum of the bank?
Dale H
April 30, 2011 at 1:04 am

Looks like this is an interest only loan at 90.53%. That is odd. What about PMI?

Was there any mention as to whether or not the taxes and insurance were escrowed?

The taxes due at closing would more than likely go to the treasurer and not the bank.

I can only assume that he means monthly what would the total payment be that was sent to the bank. Assuming the taxes and insurance would be escrowed the amount should be 903+ 237.50 + 47.91 = \$ 1,188.41.

Next time you have class, make a point of asking him to provide more clarity in the questions.

Don’t sweat it too much at this point.

daeve930
April 30, 2011 at 1:17 am

Do you mean each month or over the life of the loan?

Each month they’ll send the principal, interest, taxes and insurance in a payment. That’s what they “send” to the bank, not what they “pay” the bank. The principal and interest goes to the bank. The taxes and insurance go into an escrow account and are paid out to the county or to the insurance company when they’re due. In the industry we call this PITI, principal, interest, taxes and insurance.

BTW, the mortgage payment doesn’t look right. If you take \$ 190,000 and multiply it by 6.3%, divide it by 12 months, you get \$ 997.50, which is for the interest on the loan for one month. Your \$ 903 payment isn’t enough to cover the interest, much less any principal. Did the teacher say this was an interest only loan? That would put a whole new light on things, and this answer doesn’t work.

If you’re trying to figure out the total cost of the loan, principal and interest, over the whole term of the loan — the entire 30 years — then you multiply the principal and interest payments by 12 months, and that product by 30 years.

The closings costs are paid to the title company at closing, so that doesn’t seem to fit the phrase “send to the bank”, which is why I didn’t count them.

FYI, because the buyers didn’t make the downpayment 20% of the purchase price, there would be one more monthly charge for mortgage insurance. The amount varies not only based on the amount borrowed, but on the borrower’s credit. Sometimes it’s as much as the rest of the payment if there’s really bad credit. Now we call it PITIMI. Mortgage insurnace is frequently called private mortgage insurance or PMI. I don’t know why, and I’ve never worked for a lender in the last 15 years that called it that. When I was a real estate agent, that’s what we called it. Go figure.

Banks incur more risk when the borrower has less of his own money invested in the property. It’s easier to walk away from that \$ 18000 investment than it is to walk away from \$ 38000.

Biggie @ Arbor Mortgage
April 30, 2011 at 2:06 am

The \$ 903.00 is the interest only. This would not pay the mortgage off. But you have to give the answer in 2 ways.
\$ 903.00 x 360 = \$ 325,080.00
\$ 237.50 + \$ 47.91 = \$ 285.41 x 360 = \$ 102,747.60 – assuming they don’t go up over the next 30 years.
To pay off the loan, for a 30 year fixed, the payment would be \$ 1064.63 x 360 = \$ 383,267.95 + \$ 18,000.00 down & closing costs.

It sounds like he does not know what he is talking about, so answer both ways & don’t forget to vote me as best answers!

Moiko
April 30, 2011 at 2:09 am

It depends on your loan. Most often the homeowner will have property taxes, and homeowners insurance included in their mortgage payment, in that case all of it would go to the bank, if it is not included, the would only send the principal and interest.

Femme Flamme
April 30, 2011 at 3:01 am

Well, the simple answer: everything that you pay per month as a “mortgage payment” goes to the bank.

Your property tax, insurance, etc do NOT go to the bank, but rather to the government, the insurance company, etc. Closing costs (other than government fees) go to the title insurance company or to the lawyer who helps you with the deal.

The question you’re answering here is how much the bank makes on the sale price of 190,000 … well, multiply the monthly payments by the term of the loan, subtract the home price from it. What remains is the interest charge – that’s what the bank makes. It’s usually between 2 to 4 times the price of the house, depending on the interest rate and the term of the loan – which is why people advise paying down the principal ASAP. 🙂