Question

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...

Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house.
He is given the choice of two mortgages:

a) a 25-year mortgage at a rate of 7 %.
Find
(i) the monthly payment: $
(ii) the total amount of interest paid: $


b) a 15-year mortgage at a rate of 7 %.
Find
(i) The monthly payment: $
(ii) the total amount of interest paid: $

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the...
Mr. Smith is purchasing a $ 120000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 25-year mortgage at a rate of 9 %. Find (i) the monthly payment: $   (ii) the total amount of interest paid: $   b) a 15-year mortgage at a rate of 9 %. Find (i) The monthly payment: $   (ii) the total amount of interest paid: $
Mr. Smith is purchasing a $ 90000 house. The down payment is 20 % of the...
Mr. Smith is purchasing a $ 90000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 25-year mortgage at a rate of 7 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 7 %. Find (i) The monthly payment: $ (ii) the total amount of interest paid: $
Mr. Smith is purchasing a $ 190000 house. The down payment is 20 % of the...
Mr. Smith is purchasing a $ 190000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 25-year mortgage at a rate of 9 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 9 %. Find (i) The monthly payment: $ (ii) the total amount of interest paid: $
Mr. Smith is purchasing a $ 130000 house. The down payment is 20 % of the...
Mr. Smith is purchasing a $ 130000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) a 30-year mortgage at a rate of 10 %. Find (i) the monthly payment: $ (ii) the total amount of interest paid: $ b) a 15-year mortgage at a rate of 10 %. Find (i) The monthly payment: $ ii) the total amount of interest paid: $
) A house sells for $150,500 and a 5% down payment is made. A 30-year mortgage...
) A house sells for $150,500 and a 5% down payment is made. A 30-year mortgage at 7.5% was obtained. (i) Find the down payment. (ii) Find the amount of the mortgage. (iii) Find the monthly payment. (iv) Find the total interest paid.
Lou purchases a home for $350,000. He makes a down payment of 20% and finances the...
Lou purchases a home for $350,000. He makes a down payment of 20% and finances the remaining amount with a 15-year mortgage with an annual percentage rate of 4.25%. a. Find his monthly mortgage payment (excluding taxes and fees). b. How much principal and interest will he end up paying for his house?
You plan to purchase a $380,000 house using either a 30-year mortgage obtained from your local...
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 buy a $200,000 house and have a 20% down payment (hence the mortgage is for...
You buy a $200,000 house and have a 20% down payment (hence the mortgage is for $160,000). A 15 year mortgage has a rate of 3.5% and 0 points. The monthly mortgage payment is $1,143.8 How much (give the dollar amount) of the first month’s mortgage payment pays off principal on the mortgage? To answer, first compute how much of the first month’s payment is used to pay interest. Then, the remainder of the mortgage payment is used to pay...
5.) The Jackson family buys a house for $295,000 with a down payment of $57,000. The...
5.) The Jackson family buys a house for $295,000 with a down payment of $57,000. The family takes out a 30 year amortized mortgage on the remaining cost of the home at an annual interest rate of 3.85%. Payments (principal plus interest) of equal amount are paid monthly. Find the amount of the monthly payment needed to amortize this loan.
You plan to purchase a $390,000 house using either a 30-year mortgage obtained from your local...
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...