Mortgages, loans taken to purchase a property, involve regular payments at foxed intervals and are treated as reverse annuties. Mortgages are the : reverse of annultes, 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 $1 million. You have $300,000 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 $700,000 mortgage, and is offering a standard 30 -year mortgage at a 129 fixed nominal interest rate (called the loan's annual percentage rate or Ap9). Under this loan proposal, your mortgage payment will be per honth. (Note: Round the final value of any interest rate in percentage form to four decimat places.) Your friends suggest that you take a 15 -year mortgage, because a 30 -year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-yea, $700,000 loan at a fixed nominal interest rate of 12% (APR), then the difference in the monthly payment of the is-year mortgage and 30 -year mortgage wil be - (Note: Round the final value of any interest rate in percentage form to four decima: pleces.) It is iakely that you wan't like the prospect of paying more money each month, but if you do take out a 15 -year mortgage, you wial make far fewer. parrments and will par a lot less in interest. How much more total interest will you pay over the life of the foan if you take out a 30 -vear mortgage instead of a is vear mortgoge? $1,079,892.00 51,450,250,05 51,382,261.76 11,274,242+50 Which of the following statements is not inse about mortgages? The payment allocated toward principal in an arnortized loan is the residual balance-that is, the difference between total payment and the interest due. Mortgages are examples of amortized loans. Thier ending batahce of an amortized loan contract will bes zero. Mortgages always have a foxed nominat interest rate