Explain how such factors as home value, down payments, mortgage types, and interest rates affect the...

Explain how such factors as home value, down payments, mortgage types, and interest rates affect the total monthly mortgage payment. Explain if any of these factors surprise you and the reasons why. What strategies could you take to pay the least amount for a house (or healthcare facility) over the life of the loan?

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Expert Solution

These factors which are been listed will be used as a measure for affecting the overall monthly mortgage-

A. Home value -when there is higher amount of home value, then monthly payment will be associated with the mortgage payment would be certainly higher

B. Down payment-when there is a higher amount of down payment, then the mortgage payment which should be paid on the monthly basis would be higher.

C. Mortgage types-the type of mortgage is also important while deciding upon the amount of monthly mortgage payment, because various types of mortgages are fixed and variable in nature and nature of the mortgages always decide the amount of the monthly payment

D. Interest rates-interest rate is always been decided by the Federal Reserve and passed on to, by the commercial banks & always have an important impact on the mortgage payments because the higher interest rate, higher will be the monthly mortgage payment.

interest rate plays a very important role and it will surprise me always because it is highly fluctuating nature due to the nature of monetary policy of federal reserve and which is not certain in nature.

I will be trying to proactively manage the amount of the mortgage payment and I will try to amortize it over the period of the loan and pay it as early as possible in order to avoid the the burden and stress of late payments and interest will be low also

jeff jeffy answered 1 year ago

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