KQuestion 9 (of 10) 9. 100 points value Mortgage lenders base the mortgage inter

Question

KQuestion 9 (of 10) 9. 100 points value 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 $208,000 home ifyou put 25% down and financed the rema ning with a 30-year mortgage at 5 0% interest compared to a 30-year mortgage at 3.5% interest? (Use Table 15.1). (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest dollar amount.) Excess interest References eBook & Resources Learning Objective: 15-01 (2) Utilize an amortization chart to compute monthly motgage payments Worksheet Difficulty: Intermediate

Explanation / Answer

Loan=208000*(1-25%)=156000
Monthly payments with 30 year mortgage @5%=837.44 and interest paid=145479
Monthly payments with 30 year mortgage @3.5%=700.51 and interest paid=96183.5

So additional interest paid in 5% loan=145479-96183.5=49295.5

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.