"John & Jane Homebuyer have household income of $63,000 per year and a good credit score of 720.They have outstanding debt of $500/month to cover a car loan, student loan, and credit cards.They want to purchase a home valued at $250,000, with a 5% down payment, property taxes of 1.25% of the purchase price of the home annually, and homeowner's insurance of $60 per month.They have analyzed monthly payments using an online mortgage calculator, and are considering 2 conventional mortgage options:

Option 1 - 30 year loan term at 4% fixed interest rate

Option 2 - 15 year loan term at 3% fixed interest rate

Calculate the total monthly payment for each mortgage option.Show your answers, including the monthly mortgage payment, property taxes, and insurance.Assume the PMI (private mortgage insurance) is 0%.Which loan option would a lender most likely approve for John & Jane Homebuyer, and why?Why would the homebuyer need to pay the property taxes and insurance to the lender on a monthly basis along with the mortgage payment?

What is the total interest paid for each loan option if the loans are paid to maturity? What could John & Jane Homebuyer do to save interest on their mortgage loan?"