You consider the purchase of a new house and plan to use a mortgage to partially finance the transaction. The purchase price of the house is $635,000. To avoid mortgage insurance, you will pay 20% with your own savings and use a 20-year fixed rate mortgage for the balance. You believe you can lock in a mortgage rate of 4.2% (APR) and will make monthly mortgage payments, starting one month from now.

Question 8

What is the monthly mortgage payment based on the terms of the loan?

[ Select ] ["$3,132.18", "$3,915.22", "$2,645.83", "$2,116.67", "$3,121.22"]

Question 9

What is the amount of each mortgage payment based on revised loan terms where you pay twice a month, but receive a quarter point (0.25%) discount on your (APR) interest rate?

[ Select ] ["$2,107.36", "$1,333.09", "$1,531.68", "$2,563.88", "$3,130.43"]

Question 10

Irrespective of your previous answers, assume you pay $3,100 per month in mortgage payments. How much in total will you have paid off of your house after the second mortgage payment?

[ Select ] ["$2,648.63", "$6,200", "$3,551.37", "$130,551.37", "$129,648.63"]