Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as re annuities. Mortgages are the reverse of annuities, because you get a lump-sum amount as a loan in the beginning and then you make monthly payments to the lender. You've decided to buy a house that is valued at exist1 million. You have exist300,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your exist700,000 mortgage, and is offering a standard 30-year mortgage at a 10% fixed nominal interest rate (called the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will be exist6, 142.79 p month. Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay lot of money on interest. If your bank approves a 15-year, exist700,000 loan at a fixed nominal interest rate of 10% (APR), then the difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be? It is likely that you won't like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interest will pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage? exist1, 011, 771.65 exist1, 183, 258.37 exist857, 433.60 exist1, 097, 515.01 Which of the following statements is not true about mortgages? The ending balance of an amortized loan contract will be zero If the payment is less than the interest due, the ending balance of the loan will decrease Every payment made toward an amortized loan consists of two parts interest and repayment of principal Mortgages are examples of amortized loans