ptions 13. Mortgage payments Success Tips Mortgages, loans taken to purchase a property, nvolve regular payments at five intervals and are treated as reverse annuities Mortgages are the reverse of annuities, because you get stom-sum amount as a toon in the beginning, and then you make monthly payments to the end uccess Tips FOR YOU You've decided to buy a house that is valued at stillion. 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 $700,000 mortgage, and is offering a standard 30 year mortgage at 10% fed communal interest rate called the loan anal percentage rate or ADR). Under this loan proposal, your mortgage payment will be $7671.49 per month (Note: Round the final value of any interest rate used to four decimal places y Tools or introductory sance Your friends suggest that you take a 15 year martage, because year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15 year $700,000 lonta dominal interest rate of 10 (APR), then the difference in the monthly payment of the 15-war mortgage and 30 year mortgage will be $1279.2 Notel Round the final value of any interest rate used to four decimal prices) 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 for fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan you take out a 30-year mortgage instead of a 15-yes mortgage? 51,097,515.01 51,011,721.65 $857 433.60 $1,183,258,37 Is Which of the following statements is not true about mortgages Suctory The payment allocated toward principal in an amortired foon as the residual balance that was the difference between total payment and the interest du Mortgages always have a fixed nominal interest rate Mortgages are examples of amortized loans The ending balance of an amortized loan contract will be zero