9. Mortgage payments Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse annuities. Mortgages are the reverse of annuities, because you get a lump- sum amount as a loan in the beginning, and then you make moethly payments to the lender You've decided to buy a house that is valued at S1 million. You have $350,000 to use as a down payment on the house, and want to take out a mortgage for the remaisder of the price. Your bank has approved your sesooomongage, and is offeng a standard 30-year mortgage at a 10% aed noenaal terest rate ( Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate used to four decimal places.) that you take a 15-year mortgage, because a 30-year morigage is too loeg and you will pay a lot of money on interest. If your bank approves a 15 year, $650,000 loan at Your friends saggest will be Note R end the al vale . fixed nominal i terest rate of 10% (A R), then the difference in the monthly payment of he is year mortgage 30-year mortgage of any interest rate used to four decimal places. ) mortgage, you will make far fewer payments and will pay a lot less in interest. It is likely that you won't like the prospect of paying more moncy cach month, but if you do take out a 15-year much more total intcerest will you pay over the life of the loan if you take out a 30-year montigage instead of a 15-year mortgage? $1019,121.41 $129874027 $939 502.55 $796,188.60 Which of the following statements is not truc about mortgages? Which of the following statements is not true about mortgages? OIf the payment is less than the interest due, the ending balance of the loan will decrease. The ending balance of an amortized loan contract will be zero. ard an amortized loan consists of two parts-interest and repayment of principal. Every payment made to Mortgages are examples of amortized loans Grade It Now