Andrew is going to buy a 1.2 million home. He is considering two 30-year fixed-rate mortgage options: 

1) 10% down, annual rate of 6%; 

1. 2) 20% down, annual rate of 5.25%, and the seller is willing to offer a rebate of $8,000 with the 20% down.

 Assuming Andrew is going to hold the mortgage for 7 years, what is the lowest monthly payment with a discount rate of 4.5%

Answer rating: 100% (QA)

To calculate the lowest monthly payment for each mortgage option we need to consider the loan amount ... View the full answer