Question
You are thinking of purchasing a house that costs $235,000. You have $12,000 in cash for a down payment, but you need to borrow the
You are thinking of purchasing a house that costs $235,000. You have $12,000 in cash for a down payment, but you need to borrow the rest of the purchase price. Assume there are no closing costs. The bank is offering a 30-year mortgage that requires monthly payments and has an annual interest rate of 4.25%. What will your monthly payments be if you sign up for this mortgage? Draw the amortization schedule on a monthly basis using Excel. Calculate the total amount of interest paid throughout the life of the loan. Create a graph depicting the changes in the portions of interest and principal for each monthly payment throughout the life of the loan.
Suppose you have the option to take out a 15-year mortgage with an annual interest rate of 3.55%. What would the monthly payment be for this mortgage? Draw a new amortization schedule in a separate Excel sheet. Calculate the total amount of interest paid throughout the life of the loan. How much would you save if you choose the 15-year over the 30-year mortgage?
Suppose you have the option to take out a 15-year mortgage with an annual interest rate of 3.55%. What would the monthly payment be for this mortgage? Draw a new amortization schedule in a separate Excel sheet. Calculate the total amount of interest paid throughout the life of the loan. How much would you save if you choose the 15-year over the 30-year mortgage?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started