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Your New Home and Mortgage You have graduated and completed your education, landed a job you always dreamed of and are now ready settle down.

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Your New Home and Mortgage You have graduated and completed your education, landed a job you always dreamed of and are now ready settle down. You are considering purchasing a new home. Banks are offering 25 year mortgages or should you go with a 20 year mortgage? Original Amount (PV) 250,000 Amortization Term 25 Years Term in Years 5 years Interest rate 5% Payment Frequency Monthly You have saved for a down pa 50,000 Deduct from original amount. Use the Canadian Mortgage Calculator (Free) to answer the following questions: a) What is the monthly payment with a 25 year amortization? 2 marks Answers Here Please in BOLD b) If it takes 25 years to pay on the above terms) how much total interest will you pay? 2 marks Answers Here Please in BOLD c) What is the monthly payment using the same terms on a 20 year amortization? 2 marks Answers Here Please in BOLD d) If it take 20 years to pay on the above terms) how much total interest will you pay? 1 mark Answers Here Please in BOLD e) What mortgage should you choose and why? 1 mark Answers Here Please in BOLD f) What would happen if you could only put 5% down on the orginal investment? 2 marks Interest? Answers Here Please in BOLD Payment? Answers Here Please in BOLD

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