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Please double check the answer that I already put on. and what is the multiple choice? Thank you You've decided to buy a house that
Please double check the answer that I already put on. and what is the multiple choice? Thank you
You've decided to buy a house that is valued at $1 million. You have $400,000 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 $600,000 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 $5, 265.25 per month. 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-year, $600,000 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 $1, 182.23 ? 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 you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage? $940, 727.81 $1, 014, 222.17 $867, 233.45 $734, 943.60 Which of the following statements is not true about mortgages? Mortgages are examples of amortized loans. The payment allocated toward principal in an amortized loan is the residual balance-that is, the difference between total payment and the interest due. Mortgages always have a fixed nominal interest rate. The ending balance of an amortized loan contract will be zeroStep by Step Solution
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