Go on the Internet and find two lenders with the largest difference between their APRs. Make the following assumptions:

a. You are buying a $300,000 house, taking a $250,000 mortgage (that's the loan) and a 20% downpayment ($50,000). Ignore the closing costs (which might run another $10,000 total)

b. You will be paying this $250,000 loan off over the next 30 years (i.e. 360 monthly payments).

1. Find the difference (in FUTURE values) of how much you would save, over the life of the loan, if you switch from the higher APR lender to the lower APR lender.

Hint: (Bankrate.com makes it really easy to compare by giving your estimated monthly payments. Calculate the difference between the highest and the lowest monthly payments you find, calculate the future value of these monthly payments and that is your answer. ).

2. Find a comparable item that you could buy with these savings.