Shawn and Sylvia are comparing mortgages for a condo in Garden Grove. The condo is on the market for $427,000. They has saved enough for a 20% down payment. Shawn's bank has offered a 30 year mortgage for 5.5%. Sylvia's credit union has offered a 15 year mortgage for 4.5%.

1. Using the Mortgage Payment Factors table above, calculate the monthly payment for each mortgage to the nearest cent ($0.00).
2. What is the total cost after each mortgage at maturity (i.e., 30 years for the bank mortgage, 15 years for the credit union mortgage) to the nearest cent ($0.00)?

Bank Mortgage

5.5% for 30 years

Monthly Payment

?

Total Cost

?

Credit Union Mortgage

4.5% for 15 years

Monthly Payment

?

Total Cost

?

2)Shawn and Silvia like the 15-year option. The credit union requires that PITI not exceed 30% of gross income. What minimum combined annual salary will they need to qualify?

$104,529.60

$77,611.52

$86,759.57

$125,435.52

3)Denise has found a home in Huntington Beach for $575,000. She has a 20% down payment and will take out a mortgage for the remaining portion.

1. Calculate her down payment.
2. Using the Mortgage Payment Factors table above, calculate her monthly payment.
3. What is her total cost after 30 years?