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A. $250,000 home by making a 20% down payment and then taking out a 3.74% thirty...

A. $250,000 home by making a 20% down payment and then taking out a 3.74% thirty year fixed rate mortgage loan to cover the remaining balance. All work must be shown justifying the following answers. (mortgage payment = $925.10 , total interest over entire life of loan = $200,000 , principle balance left after payment of 240th installment = $92,495.51

B. How much interest will you have saved by paying the loan off early after making the 240th payment?

C. Suppose you decided to pay for this house by taking out a 15 year 3.04% fixed rate mortage instead of the 30 year 3.74% fixed rate mortage. What would be your required mortage payment for this 15 year mortgage assuming you still make the same 20% down payment?

D. How much interest would you have saved by taking out the fifteen year fixed rate mortgage instead of the 30 year fixed rate mortgage?

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