You plan to pirchase a $240,000 house using either a 30 year mortage obtained from your local bank with a rate of 5.75 percent, or a 15 year mortage with a rate of 5.00 percent. You will make a down payment of 20% of the purchase price.

Calculate the amount ofinterest and, separatly, prinicpal paid on each mortage. What is the difference in interest paid?

Calculate your monthly payments on the two mortagages. What is the difference in the monthly payment on the two mortgages?