If you borrow $120,000 at an APR of 7% for 25 years, you will pay $848.13 per month. If you borrow the same amount at the same APR for 30 years, you will pay $798.36 per month.
a. What is the total interest paid on the 25 year mortgage?
b. What is the total interest paid on the 30year mortgage?
c. How much more interest is paid on the 30 year loan? Round to the nearest dollar.
d. If you can afford the difference in monthly payments, you can take out the 25 year loan and save all the interest from part C.
What is the difference between the monthly payments of the two different loans? Round to the nearest dollar?