Duke was approved for a 30 year conventional loan for $250,000 at 3.65% fixed rate. He was also approved for a 15 year conventional loan for $250,000 at 3.45% fixed rate. He has $20,000 to put as a down payment. He has to pay insurance of $1400 a year and property tax of $2500 a year. Use time value of money to figure out the best options for Duke.

I. If he looks at a house that is $150,000 how much would he pay per month with a 30 year loan.

Answer rating: 100% (QA)

To calculate the monthly payment for a 30year loan with a fixed rate we can use the formula P PV r ... View the full answer