You want to buy a house that has a purchase price of $130,000. You plan to make a down payment of 10% of the purchase price and then borrow the rest. What is the dollar value of your down payment?

$13000

How much money will you need to borrow?

$117,000

You have the option to take out a 30-year mortgage that has an APR of 4.8% or a 20-year mortgage that has an APR of 4.05%. When answering the following questions, remember to base your mortgage payments on the amount you need to borrow rather than the entire purchase price.

30-year mortgage If you take out a 30-year mortgage with an APR of 4.8%, what will your monthly payment be? (Round your answer to the nearest cent.)

$

If you make the payment you just calculated every month for 30 years, how much will you pay altogether? $

What dollar amount of your total 30-year mortgage payments go to interest? Hint: The dollar amount of your interest is the difference between your total payments and the amount you borrowed. $ What percentage of your total 30-year mortgage payments go to interest? (Round your percentage to one decimal place.) % 20-year mortgage If you take out a 20-year mortgage with an APR of 4.05%, what will your monthly payment be? (Round your answer to the nearest cent.) $ If you make the payment you just calculated every month for 20 years, how much will you pay altogether? $ What dollar amount of your total 20-year mortgage payments go to interest? Hint: The dollar amount of your interest is the difference between your total payments and the amount you borrowed. $ What percentage of your total 20-year mortgage payments go to interest? (Round your percentage to one decimal place.) % 30-year vs 20-year mortgage How much money will you save altogether by taking out a 20-year mortgage rather than a 30-year mortgage? $

Thank you!