The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of...

The Mendez family is considering a mortgage loan of $350,500 at an annual interest rate of 6.7%.

(a) How much greater is their mortgage payment if the term is 20 years rather than 30 years? $

(b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?

Solutions

Expert Solution

Please give like

Your like will motivate me

THANKS

milcah answered 1 year ago

Next > < Previous

Related Solutions

The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of...

The Mendez family is considering a mortgage loan of $350,000 at an annual interest rate of 6.55%. (a) How much greater is their mortgage payment if the term is 20 years rather than 30 years? (b) How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan?

(7-A) The Mendez family is considering a mortgage loan of $348,500 at an annual interest rate...

(7-A) The Mendez family is considering a mortgage loan of $348,500 at an annual interest rate of 6.9%. How much less is the amount of interest paid over the life of the 20-year loan than over the life of the 30-year loan? (8-B) Marcel Thiessen purchased a home for $209,300 and obtained a 15-year, fixed-rate mortgage at 9% after paying a down payment of 10%. Of the first month's mortgage payment, how much is interest and how much is applied...

Assume a mortgage loan amount of $ 400,000, with annual interest rate 4% and 15 years...

Assume a mortgage loan amount of $ 400,000, with annual interest rate 4% and 15 years term 1. Calculate annual payment amount 2. Calculate monthly payment amount 3. Do you pay more annually or monthly? Why? 4. Prepare a 180 month loan amortization schedule. How much is your total interest payment?

Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years...

Assume a mortgage loan amount of $ 300,000, with annual interest rate 4% and 5 years term 1. Calculate annual payment amount 2. Calculate monthly payment amount 3. Do you pay more annually or monthly? Why? 4. Prepare a 60 month loan amortization schedule. How much is your total interest payment?

Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 8.2%....

Suppose you obtain a 20-year mortgage loan of $197,000 at an annual interest rate of 8.2%. The annual property tax bill is $978 and the annual fire insurance premium is $491. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%....

Suppose you obtain a 25-year mortgage loan of $194,000 at an annual interest rate of 8.5%. The annual property tax bill is $971 and the annual fire insurance premium is $481. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.)

Suppose you obtain a 20-year mortgage loan of $199,000 at an annual interest rate of 8.1%....

Suppose you obtain a 20-year mortgage loan of $199,000 at an annual interest rate of 8.1%. The annual property tax bill is $966 and the annual fire insurance premium is $487. Find the total monthly payment for the mortgage, property tax, and fire insurance. (Round your answer to the nearest cent.) $_______________

A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and...

A borrower is offered a mortgage loan for $100,000 with an interest rate of 10% and a 30-year amortization period with monthly payments. The origination fee is 1% of the loan and the lender charges two discount points. What is the effective interest rate? 10%, 9%, 10.37%, or 10.24%?

You want to take out a $324,000 mortgage (home loan). The interest rate on the loan...

You want to take out a $324,000 mortgage (home loan). The interest rate on the loan is 5.3%, and the loan is for 30 years. Your monthly payments are $1,799.19. How much will still be owed after making payments for 10 years? $__________Round your answers to the nearest dollar. How much will still be owed after making payments for 15 years? $__________ Round your answers to the nearest dollar. How much will still be owed after making payments for 20...

You are considering an adjustable rate mortgage loan with the following characteristics: • Loan amount: $300,000...

You are considering an adjustable rate mortgage loan with the following characteristics: • Loan amount: $300,000 • Term: 20 years • Index: one year T-Bill • Margin: 2.5% • Periodic cap: 2% • Lifetime cap: 5% • Negative amortization: not allowed • Financing costs: $3,500 in origination fees and 1 discount point Suppose the Treasury bill yield is 3.5% at the outset and is then moves to 4.5% at the beginning of the second year and to 8.5% at the...

Subjects