Aya and Sakura have now saved up their down payment to buy a home, but they...

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Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they're not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually. How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? What is the total amount of interest that would be paid to the lender after 25 years of payments? What if Aya and Sakura could only afford a monthly payment of $2,000? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? What is the total amount of interest that would be paid to the lender over 25 years? Aya and Sakura have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $450,000 to cover the remaining amount and they're not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually. How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? What is the total amount of interest that would be paid to the lender after 25 years of payments? What if Aya and Sakura could only afford a monthly payment of $2,000? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? What is the total amount of interest that would be paid to the lender over 25 years?

Answer rating: 100% (QA)

To calculate the monthly loan payments for a mortgage of 450000 over 25 years at an interest rate of ... View the full answer