1. According to Zillow, the median home price in New Jersey last year was approximately $450,000....

 

Transcribed Image Text:

1. According to Zillow, the median home price in New Jersey last year was approximately $450,000. To qualify for the best mortgage rates, you will need to make a 20% down payment. How much will you need to have saved to buy a $450,000 house in New Jersey? 2. The current interest rate for a 30-year mortgage is 6.25%. Assuming you put 20% down, how much will you pay per month for a 30-year mortgage? 3. How much will you pay in interest over the life of the loan? 4. After 5 years, how much will you still owe on your mortgage? 5. After 5 years, suppose interest rates have dropped. You can now refinance your mortgage. When you refinance your mortgage, you pay off the original mortgage and take out a new mortgage. This new mortgage will likely have a different rate but will restart the term. Suppose you can refinance into a 15-year mortgage at 4.00%. What will be your new monthly payment? 6. After 5 more years, how much will you owe on your mortgage? 7. At this time, you decide you will pay an extra $250 per month to pay down your mortgage even faster. How much quicker will you be able to pay off your mortgage? 1. According to Zillow, the median home price in New Jersey last year was approximately $450,000. To qualify for the best mortgage rates, you will need to make a 20% down payment. How much will you need to have saved to buy a $450,000 house in New Jersey? 2. The current interest rate for a 30-year mortgage is 6.25%. Assuming you put 20% down, how much will you pay per month for a 30-year mortgage? 3. How much will you pay in interest over the life of the loan? 4. After 5 years, how much will you still owe on your mortgage? 5. After 5 years, suppose interest rates have dropped. You can now refinance your mortgage. When you refinance your mortgage, you pay off the original mortgage and take out a new mortgage. This new mortgage will likely have a different rate but will restart the term. Suppose you can refinance into a 15-year mortgage at 4.00%. What will be your new monthly payment? 6. After 5 more years, how much will you owe on your mortgage? 7. At this time, you decide you will pay an extra $250 per month to pay down your mortgage even faster. How much quicker will you be able to pay off your mortgage?

Answer rating: 100% (QA)

1 Down Payment Amount To qualify for the best mortgage rates and make a 20 down payment on a 450000 house Down Payment Amount 20 of 450000 Down Payment Amount 020 450000 Down Payment Amount 90000 You ... View the full answer