12. Mortgage payments Aa Mortgages, loans taken to purchase a property, invo've regu ar pasyments at fixed intervais annuliles. Mortgages and then you make monthly payments to the lender are the reverse of annulties, because you get a lump-sum amount as a loan in the beginning and are treated as reverse You've decided to buy a house that is valued at $1 mitlion. You have $450,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase $550,000 mortgage, and is offering a standard 30-year mort loan's price Your bank has approved your gage at a 12% ned nominal iterest rate (caled the annual percentage rate or APR). Under this loan proposal, your mort month. (Notes Round the final value of any interest rate used to four decimal places) age payment will be Your friends suggest that you take a 15-year mortgage, lot of money on interest. If your bank approves a 15-year, because a 30-year mortgege is too long and you wll pay a 550,000 loan at rind rominal inter strate of 12% difference in the monthly payment of the 15-year mortgage and 30-year mortgage well be ? (Note: Round the final value of any interest rate used to four decimal places.) It is likely that you wont like the prospedt of paying more money each mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total Interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage? month, but if you do take out a 15-year O $848,487.60 $1,170,912.89 O $1,001,215.37 o $1,086,064.13 Which of the following statements is not true about mortgages? O Every payment made toward an amortized loan consists of two parts-interest and repayment of prindpal. O If the payment is less than the interest due, the ending balance of the loan will decrease O Mortgages are examples of amortized loans. O The ending balance of an amortized loan contract will be zero 2 3 6 R. tab caps lock