You've decided to buy a house that is valued at $1 million. You have $450,000 to use as a down payment on the house, and you take out a mortgage for the rest. Your bank has approved your mortgage for the balance amount of $550,000 and is offering you a standard 30-year mortgage with 10% fixed nominal interest rate (called the annual percentage rate, or APR). According to this proposal, what will be your monthly mortgage payment? $7, 481.04 $6, 515.75 $6, 033.10 $4, 826.48 Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long, and you will lose a lot of money on interest. If your bank approves a 15-year, $550,000 loan at a fixed nominal interest rate of 10% (APR), what will be the difference in the monthly payment of the 15-year mortgage and 30-year mortgage? $1, 246-27 $1, 083.71 $1, 571.38 $1, 788.12 It is likely that you won't like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage? $862, 334.21 $673, 698.60 $794, 964.35 $929, 704.07 Which of the following statements is not true about mortgages? Mortgages are examples of amortized loans. The ending balance of an amortized loan contract will be zero. If the payment is less than the interest due, the ending balance of the loan will decrease. Every payment made toward an amortized loan consists of two parts-interest and repayment of principal