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Cindy Said:

What can I do about my monthly mortgage payment going up as a result of lender error?

We Answered:

Even though it is the lender's mistake, you still purchased the home and you have to be responsible for its costs, even if they weren't properly disclosed to you.

If you want a remedy, contact a real estate attorney and see if there's anything that can be done. If the lender willfully neglected to tell you about those, then you might be able to get some money out of them. But if it was an honest mistake, you won't see anything. The burden of proof will also be on you - you'll have to prove that the lender willfully neglected to tell you about the mello roos.

Norma Said:

A family recently purchased a home, taking out a mortgage of $90,000 at 8 1/4 % for 20 years?

We Answered:

First I'm going to assume this is a standard amortized loan. There are many types of loans available, but mortgages are typically amortized. Also I'm going to assume that the payment is due at the end of each period (yes, it makes a difference).

We need the periodic interest rate: 8.25%/12 = 0.6875%

Total number of payments: 20*12 = 240

The payment = $90,000/(A-angle-240 at 0.6875%) The stuff inside the parentheses is actuarial notation for the present value of a series of future cash flows....probably more than you care about.

In general, (A-angle-n at i) =
[1-(1+i)^(-n)]/i, where n is the number of payments and i is the interest rate per period (generally the annual interest rate divided by the number of payments per year)

(A-angle-240 at 0.6875%) = [1 - (1+0.6875%)^(-240)]/0.6875%
= 117.361849

So the payment (principle and interest only) is 90,000/117.361849
=766.859087, or about $766.86

Now we need to add monthly payments for the insurance and property taxes: ($1,980+$636)/12 = $218 per month

The the PITI payment = $766.86 + $218 = $984.86

Tara Said:

The Patel family recently purchased a home taking out a mortgage of $235,000 at 83/4% for 25 years.?

We Answered:

By my calculations, the answer is $2,584.04, so it looks like "B" is the correct answer.

You should invest in a mortgage calculator. Mine is made by Calculated Industries. The model is the Qualifier Plus III FX.

Good luck!