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using any numbers Scenario#3 You will now consider how much the same house would cost with a mortgage that has a shorter repayment time. Instead
using any numbers
Scenario#3 You will now consider how much the same house would cost with a mortgage that has a shorter repayment time. Instead of a 30-year fixed rate mortgage, you will find a 15-year fixed rate mortgage for the same amount used above. What is the interest rate for a 15-year fixed rate? What is the new estimated monthly mortgage payment? Prepare an amortization table for the loan Calculate the total cost of the house after the life of the mortgage. a. Total Amount paid back to the bank: b. Total Cost of house with down payment: Calculate the total amount of interest paid on the house. Amount of interest paid: (Difference between what you paid and the amount you took out the mortgage for) Step by Step Solution
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