Mortgage lenders base the mortgage interest rate they offer you on your credit r

Question

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $184,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at 3.5% interest? (Use 360 days a year.Do not round intermediate calculations. Round your answer to the nearest cent.)

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $184,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at 3.5% interest? (Use 360 days a year.Do not round intermediate calculations. Round your answer to the nearest cent.)

Explanation / Answer

Total interest in 6% rate=$170513.81

Total interest in 3.5% rate=$90,757.76

Excess Interest=$(170513.81-90,757.76)=$79756.05

working for 3.5% interest rate-

working for 6% interest rate-

House Price $184,000.00 Loan Amount $147,200.00 Down Payment $36,800.00 Total of 360 Mortgage Payments $237,957.76 Total Interest $90,757.76

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