Candice wants to buy a home. She has qualified for a $548,000 Mortgage loan. She has two loan options. Which is the better choice if she wants a lower monthly payment?

Calculate each option, and show Excel calculations.

Option 1:

If the bank gives her an interest rate of 6.60%, what will her monthly payment be on a 30-year mortgage?

Loan Amount (PV)	$548,000
APR	6.60%
Loan length	30 years
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Monthly Payment

Option 2:

If the bank gives her an interest rate of 4.40%, what will his monthly payment be on a 15-year mortgage?

Loan Amount (PV)	$548,000
APR	4.40%
Loan length	15 years
n
Monthly Payment