You plan to purchase a $ 300,000 house with 25% down payment. You want to have a 25 year mortgage at 5% for the balance. Your real estate agent advises you that you should amortize the loan over 20 years instead because you have to pay a lot more interest for the extra 5 years.

For your 25 year mortgage, your monthly payment is :

Select one:

a. $ 1,215

b. $ 1,315

c. $ 1,375

d. $ 1,415

e. $ 1,455

With a 25 year mortgage, your total interest payment over the 25 year period is:

Select one:

a. $ 395,000

b. $ 200,000

c. $ 150,000

d. $ 230,000

e. $ 170,000