Based on Exhibit 9-9 , what would be the monthly mortgage payments for each of the following

Question:

Based on Exhibit 9-9 , what would be the monthly mortgage payments for each of the following situations?

a. $40,000, 15-year loan at 5.5 percent.

b. $76,000, 30-year loan at 6 percent.

c. $65,000, 20-year loan at 7 percent.

What relationship exists between the length of the loan and the monthly payment? How does the mortgage rate affect the monthly payment?

2. Comparing Total Mortgage Payments.

Which mortgage would result in higher total payments?

Mortgage A: $970 a month for 30 years

Mortgage B: $760 a month for 5 years and $1005 for 25 years

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Personal Finance

ISBN: 978-1259720680

12th edition

Authors: Jack R. Kapoor, Les R. Dlabay, Robert J. Hughes, Melissa Hart

Question Posted: