Freddy and Frieda Finance are looking to buy a house. They can comfortably  afford a monthly payment of $2500 and plan to pay $130,000 as a down payment. Help them evaluate some mortgage options.
The Finances prefer a 15-year mortgage, but 15-year monthly mortgage payment is more than prefer to pay and want to know some options to get the payment down to their $2500/month goal. 

a) What APR on a 15-year mortgage with the same down payment and loan amount would meet Finances monthly payment goal? 

b) What loan term (in years) with a 3% APR would meet Finances monthly payment goal? 

c) What down payment on The Bank of United States 15-year mortgage with the 2.75% APR would meet Finances monthly payment goal? How much more than the original planned $130,000 down payment would they need?

Answer rating: 100% (QA)

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