You want to buy a house that has a purchase price of $190,000. 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?

How much money will you need to borrow?

You have the option to take out a 30-year mortgage that has an APR of 5.1% or a 20-year mortgage that has an APR of 4.35%. 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 5.1%, 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 4.35%, 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?

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?