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Average: /15 1. Mortgage payments Mortgages, loans taken to purchase a property, involve regular payments at fixed intervals and are treated as reverse 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 $1 million. You have $500,000 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 $500,000 mortgage, and is offering a standard 30-year mortgage at a l2% fixed nominal nterest rate (caled the loan's annual percentage rate or APR). Under this loan proposal, your mortgage payment will be month. (Note: Round the final value of any interest rate used to four decimal places.) per Your frilends suggest that you take a 1S-year mortgage, because a 30-year mortgage is too long and you will paya ot of money on interest. If your bank approves a 15-year, SS00,000 loan at a fixed nominal interest rate of 12% (APR), then the difference in the monthly payment of the 1s-year mortgage and 30-year mortgage will bde ? (Note: Round the final value of any interest rate used to four decimal places.) 986.4 $1,243.78 $857.78 $1,415.34 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 wll pay a lot less in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage? O $987,328.51 $771,35040 $1,064,463.55 $910,193.47 Which of the following statements is not true about mortgages? toward an amortized loan consists of two parts-interest and repayment of principal, O Mortgages are examples of amortized loans. O The ending balance of an amortized loan contract will be zero. O If the payment is less than the interest due, the ending balance of the loan well decrease