The price of a home is $120,000. The bank requires a 15% down payment. The buyer if offered two mortgage options: 15-year fixed at 9.5% or 30-year fixed at 9.5%. Calculate the amount of interest paid for each option. How much does the buyer save in interest with the 15-year option? Use the PMT formula to determine the regular payment amount.

Answer rating: 100% (QA)

The PMT is by PMT Lr1rn1rn1 where PMT Monthly payment L Loan amount 120000115 102000 r ... View the full answer