Nina and Rafael were approved for a mortgage with the following details: Term: 30 Year Mortgage:...
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Nina and Rafael were approved for a mortgage with the following details: Term: 30 Year Mortgage: $150,000 APR: 7% Repayment Option 1: . Fixed monthly payment: $1,200 Repayment Option 2: . Start with regular payment and increase by 0.35% monthly Q1: Which payment will result in the fastest payoff? Q2: What is the difference in the total interest payments between the two alternative payment methods? Q3: Which repayment method results in higher home equity (the lower loan balance) after fourteen years? Nina and Rafael were approved for a mortgage with the following details: Term: 30 Year Mortgage: $150,000 APR: 7% Repayment Option 1: . Fixed monthly payment: $1,200 Repayment Option 2: . Start with regular payment and increase by 0.35% monthly Q1: Which payment will result in the fastest payoff? Q2: What is the difference in the total interest payments between the two alternative payment methods? Q3: Which repayment method results in higher home equity (the lower loan balance) after fourteen years?
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Q1 Which payment will result in the fastest payoff For repayment option 1 Fixed monthly payment of 1200 the monthly payment remains constant but the i... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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