Question
A 22-year old college graduate just got a job in Nashville. She is considering buying a house with a $150,000 mortgage. The APR is 14%
A 22-year old college graduate just got a job in Nashville. She is considering buying a house with a $150,000 mortgage. The APR is 14% compounded monthly for her monthly mortgage payments on a 32-year fixed rate loan. If she can get her FICO score up to 750, the APR drops to 13.6%. How much in interest cost will she save over the life of the loan assuming she can increase her FICO score to 750?
so using the information i used P = 150000 to find A.
so the Monthly payment for the 14% = $1769.635047
and the monthly payment on 13.6% = $1722.263005
What is the total interest saved over 30 years Rounding the answer to the nearest dollar?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started