You want to buy a house that has a purchase price of $$140,000.$ 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?

$

Correct: Your answer is correct.

How much money will you need to borrow?

$

Correct: Your answer is correct.

You have the option to take out a $30-$year mortgage that has an APR of $4\%$ or a $20-$year mortgage that has an APR of $3\mathrm{.}25\%.$ 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 $4\%,$ 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 $3\mathrm{.}25\%,$ 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?

$