Mortgages, loons taken to purchase a property, nvolve regular payments of fixed intervals and are treated as reverse anhuities Mortgyies are the reverse of annuties, because you get a lumpisum amount as a loan in the beginning, and then you moke monthy parments to the lender. You've decided to buy a house that is valued at $1 milion. You have $250,000 to use as a down payment an the house, and want to take out a mortgege for the remainder of the purchase price. Your bank has approved your $750,000 mortgage, and is offering a standard 30 -year mortgoge at a 10% foxed nominal interest fate (called the loan's annual percencage rate or ApR). Under this loan proposal, your mortgage payment will be per month, (Note: Round the final value of any interest rate ised to four decimal places.) Your triends suggest that you take a 15. year montgsge, because a 30-year mortgage is toe long and you will pay a lat of money on interest, If your. bank approves a 15-year, $750,000 laan st a fixed nominal interest rate of 10% (APR), then the difference in the monthiy peyment of the 15 -year mortgege and 30 -year mortgage with be 7 (Note: Plound the finsl value of any interest rate used to foor decimat piaces, ) It is likely that you wont tike the prospect of paying more money each menth, bue if you do take cut a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much mere total interest will you pay over the iffe of the loan if you take out a 30 -year motgoge? instead of a 15-year mortagat $1,175,913.22 $1,084,045.00 $1,267,781,44 3918,682.20 Which of the following statements is not true abouk mortgages? bank approves a 15 -year, 5750,000 loan at a fived nominal interest rate of 10% (APR), then the difference in the monthly payment of the 15 -yoar mortgage and 30-year mortgage will be _ 7 (Note: Round the faal value of any interest rate used to four decimal places. ) It is likely that you want like the prospect of paying micre money each month, but if you do take cut a 15 -year mortgoge, you will make far tener puyments and will pay a lot less in interest. Hew much more total interest will you poy over the life of the loan if you take out a 30-yes mortgage instead of a 15 year mortgoge? iatalez and 5 tudy Jools ental Options $1,175,913.22 ollege Success Tips $1,034,045.00 $1,267,781,44 $918,682:20 Which of the following statements is not true about mortgages? Martyages are examples of amortized loans. The ending balance of an amortized loan contrect will be sero. Mortgages alwoys have a fixed nominal interest rate. The payment allocated toward principal in an amortited losn is the residual balance-that is, the difference between total payment and the interest doe
