Question

What difference would there be in a mortgage rate for a 15 yr V. 30 yr...

What difference would there be in a mortgage rate for a 15 yr V. 30 yr mortgage?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The 15-year and 30 year mortgage loans are similarly structured. The differences between them are:

1.The 15-year mortgage has a higher monthly payment. Whereas, the 30-year mortgage has a lower monthly payment.

2.The mortgage interest is higher in case of the 30-year mortgage. It is lower in case of 15-year mortgage.

3.The 30-year mortgage qualifies for a higher loan amount. The 15-year mortgage qualifies only for a lower loan amount.

4.The 30-year mortgage is more affordable than the 15-year mortgage.

I hope that was useful :)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What will be your monthly payment on a $400,000 15 and a 30 yr mortgage if...
What will be your monthly payment on a $400,000 15 and a 30 yr mortgage if the rate is 4.15%for people with good credit and 13.5% for people with bad credit 4 calculations? Also, how much interest will you pay over the life of the 4 loans you just calculated?  (The mortgage is $400,000 you may have to adjust a bank rate default of 20% down)
1) What is the Monthly Mortgage Payment for a 30-yr fixed rate mortgage with an interest...
1) What is the Monthly Mortgage Payment for a 30-yr fixed rate mortgage with an interest rate of 4.25%, 1.5 points and $3000 in fees on a home with a value of $325,000 and an LTV of 93%?(Please explain using financial calculator)
PROBLEM#1 Home Mortgage. GIVEN:mortgage amount = $250,000 Interest Rate =7% Q1: What are annual payments to...
PROBLEM#1 Home Mortgage. GIVEN:mortgage amount = $250,000 Interest Rate =7% Q1: What are annual payments to required to finance mortgage over 30 years? Q2 What are the TOTAL payments. Q3 : How much is the total interest paid? Q4 :What are ANNUAL pmts for a 15 yr mortgage @ the same 7% rate ? Q5 :What are total pmts for 15 yr mortgage ? Q6 :What are savings of a 15 year mortgage vs a 30 year mortgage Q7 :What...
The difference between the amount of interest you'd pay if you took out a 30-year mortgage...
The difference between the amount of interest you'd pay if you took out a 30-year mortgage on a home worth $260,000 at an annual rate of 5% vs. a 15-year mortgage on the same home assuming the rate is the same.
Date 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30...
Date 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 03/27/19 2.40 2.22 2.16 2.18 2.28 2.39 2.63 2.83 Use the table above and assume that the Pure Expectations Theory holds, what is the expected 1-year interest rate next year?
Date 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30...
Date 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr 03/27/19 2.40 2.22 2.16 2.18 2.28 2.39 2.63 2.83 Use the table above and assume that the Pure Expectations Theory holds, what is the expected 2-year interest rate 3 years from today?
A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage...
A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in payments on a 30-year mortgage at an interest of 0.75% a month versus a 15-year mortgage with an interest rate of 0.7% a month. Both mortgage are for $100,000 and have monthly payments. 1) What is the monthly payment committed by the 30-year mortgage? And the total payment? 2) What is the monthly payment committed by...
loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from...
loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in payments on a 30-year mortgage at an interest of 0.75% a month versus a 15-year mortgage with an interest rate of 0.7% a month. Both mortgage are for $100,000 and have monthly payments. 1) What is the monthly payment committed by the 30-year mortgage? And the total payment? 2) What is the monthly payment committed by the...
Teaser Rate Mortgage A mortgage broker is offering a 30-year mortgage with a teaser rate. In...
Teaser Rate Mortgage A mortgage broker is offering a 30-year mortgage with a teaser rate. In the first two years of the mortgage, the borrower makes monthly payments on only a 6.7 percent APR interest rate. After the second year, the mortgage interest charged increases to 11.4 percent APR. What is the effective interest rate in the first two years? What is the effective interest rate after the second year? Multiple Choice 6.59%, 11.12% respectively 6.91%, 12.02% respectively 14.29%, 16.05%...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT