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4. 30 year fixed mortgage rates are currently 5% and 15 year rates for fixed mortgages are 4.65%. Assume $3500 in closing costs. What would
4. 30 year fixed mortgage rates are currently 5% and 15 year rates for fixed mortgages
are 4.65%. Assume $3500 in closing costs. What would the Lanleys monthly
payment and payback period be for each mortgage? Assume that closing costs are
paid from existing funds.
Residence: 4 bedroom home, original cost $500,000 FMV: $795,000 Mortgage: 8.5% fixed, 30 years in 1998 Mortgage balance: $260,000 Monthly mortgage payment (P&I): $3,100
a. 30 years
b. 15 years
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