Question

Choose the scenario that saves the homeowner the most money while buying a home. Assume the home costs $200,000 and the interest rate is 5.75% compounded monthly.

  

The homeowner makes quarterly payments for 30 years (interest is quarterly too).

   

The homeowner makes a deal for no interest rate but has to pay $900 per month for 30 years.

   

The homeowner pays 20% as a down payment and finances the rest for 30 years.

   

The homeowner negotiates a lower interest rate of 4.75% for 30 years.

   

The homeowner takes a 15 year mortgage rather than a 30 year mortgage

Answer 1