Question

You plan to purchase a $300,000 house using either a 30-year mortgage obtained from your local savings bank with a rate of 7.80 percent, or a 20-year mortgage with a rate of 7.20 percent. You will make a down payment of 15 percent of the purchase price. a. Calculate the amount of interest and, separately, principal paid on each mortgage. What is the difference in interest paid? b. Calculate your monthly payments on the two mortgages. What is the difference in the monthly payment on the two mortgages?

Answer #1

30 year mortgage:

Monthly payment=PMT(7.8%/12,12*30,-300000*(1-15%))=$1,835.67

Amount of interest paid=1835.67*12*30-300000*(1-15%)=405841.2

20 year mortgage:

Monthly payment=PMT(7.2%/12,12*20,-300000*(1-15%))=$2,007.74

Amount of interest paid=2007.74*12*20-300000*(1-15%)=226857.6

Amount of principal paid will be equal to 300000*(1-15%)=255000
in both the cases

Difference in interest paid=405841.2-226857.6=178983.6

Difference in monthly payment=2007.74-1835.67=$172.07

You plan to purchase a $380,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.20
percent, or a 15-year mortgage with a rate of 7.00 percent. You
will make a down payment of 25 percent of the purchase price.
a. Calculate the amount of interest and, separately, principal
paid on each mortgage. What is the difference in interest paid?
b. Calculate your monthly payments on the two mortgages. What is
the difference...

You plan to purchase a $390,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.50
percent, or a 15-year mortgage with a rate of 7.55 percent. You
will make a down payment of 20 percent of the purchase price. a.
Calculate the amount of interest and, separately, principal paid on
each mortgage. What is the difference in interest paid? b.
Calculate your monthly payments on the two mortgages. What is the
difference...

You plan to purchase a $390,000 house using either a 30-year
mortgage obtained from your local savings bank with a rate of 8.50
percent, or a 15-year mortgage with a rate of 7.55 percent. You
will make a down payment of 20 percent of the purchase price. a.
Calculate the amount of interest and, separately, principal paid on
each mortgage. What is the difference in interest paid? b.
Calculate your monthly payments on the two mortgages. What is the
difference...

You plan to purchase an $140,000 house using a 30-year mortgage
obtained from your local bank. The mortgage rate offered to you is
4 percent. You will make a down payment of 10 percent of the
purchase price. a. Calculate your monthly payments on this
mortgage. (Do not round intermediate calculations. Round your
answer to 2 decimal places. (e.g., 32.16)) Monthly payment $ b.
Calculate the amount of interest and, separately, principal paid in
the 230th payment. (Do not round...

You plan to purchase a $150,000 house using a 15-year mortgage
obtained from your local credit union. The mortgage rate offered to
you is 7.5 percent. You will make a down payment of 20 percent of
the purchase price.
a.
Calculate your monthly payments on this mortgage. (Do
not round intermediate calculations. Round your answer to 2 decimal
places. (e.g., 32.16))
Monthly payment
$
b.
Calculate the amount of interest and, separately, principal paid
in the 80th payment. (Do not...

You plan to purchase an $120,000 house using a 15-year mortgage
obtained from your local bank. The mortgage rate offered to you is
4.25 percent. You will make a down payment of 10 percent of the
purchase price.
a.
Calculate your monthly payments on this mortgage. (Do
not round intermediate calculations. Round your answer to 2 decimal
places. (e.g., 32.16))
Monthly payment
$
b.
Calculate the amount of interest and, separately, principal paid
in the 90th payment. (Do not round...

You plan to purchase a 430,000 house using 30-year mortgage
obtained from your local bank. The mortgage rate offered to you is
4.5%. You will make the down payment of 20 percent of the purchase
price.
Calculate your monthly payment on this mortgage? Also, show how
much total interest will you be paying.

You plan to purchase a house for $290,000 using a 30-year
mortgage obtained from your local bank. You will make a down
payment of 20 percent of the purchase price. You will not pay off
the mortgage early. Assume the homeowner will remain in the house
for the full term and ignore taxes in your analysis. Your bank
offers you the following two options for payment.
Option 1: Mortgage rate of 6.50 percent and zero points.
Option 2: Mortgage rate...

You plan to purchase a $410,000 house using a 15-year mortgage
obtained from your bank. The mortgage rate offered to you is 4.75
percent. You will make a down payment of 20 percent of the purchase
price.
a. Calculate your monthly payments on this mortgage.
b. Construct the amortization schedule for the mortgage. How
much total interest is paid on this mortgage?

You plan to purchase a $130,000 house using a 15-year mortgage
obtained from your local credit union. The mortgage rate offered to
you is 5.25 percent. You will make a down payment of 20 percent of
the purchase price.
a.
Calculate your monthly payments on this mortgage. (Do not
round intermediate calculations. Round your answer to 2 decimal
places. (e.g., 32.16))
Monthly payment $
b.
Construct the amortization schedule for the first six
payments. (Do not round intermediate calculations....

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 7 minutes ago

asked 32 minutes ago

asked 50 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago