Based on the information below, which is the better loan for a borrower? 15-year or 30-year...

 

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Based on the information below, which is the better loan for a borrower? 15-year or 30-year mortgage? Will your answer be different if the borrower has large credit card balances at a 12% interest rate? Explain and show your calculations if necessary. • Loan A: Loan amount: $250,000 at 6% annual rate with monthly amortization, maturity: 15 years • Loan B: Loan amount: $250,000 at 6% annual rate with monthly amortization, maturity: 30 years Based on the information below, which is the better loan for a borrower? 15-year or 30-year mortgage? Will your answer be different if the borrower has large credit card balances at a 12% interest rate? Explain and show your calculations if necessary. • Loan A: Loan amount: $250,000 at 6% annual rate with monthly amortization, maturity: 15 years • Loan B: Loan amount: $250,000 at 6% annual rate with monthly amortization, maturity: 30 years

Answer rating: 100% (QA)

To determine which loan is better lets compare Loan A 15year mortgage and Loan B 30year mortgage bas... View the full answer