Bob & Kate are purchasing a new home. The house they've selected has a price of...

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Bob & Kate are purchasing a new home. The house they've selected has a price of $350,000. The mortgage interest rate is currently 5% (regardless of the option they pick below). They are considering several options: For maturity, they are considering both 15 year and 30 year amortizations. For down payments they are considering either 10% or 20%. • 1. Calculate the amount of their monthly mortgage payment under each of the alternatives. Amortization Period (years) 15 30 2. Calculate the Total interest payments under each of the 4 alternatives: Downpayment Amortization Period (years) 15 Month 1 2 3 10% Beginning Principal Balance Downpayment 10% 20% 30 3. Assume that Bob & Kate purchase the house putting 20% down and selecting the 15 year amortization period. Construct a Mortgage Amortization Table reflecting the first 3 months of payments 20% Interest on Payment Beginning Balance Principal Repaymen Principal Balance at End of Period Bob & Kate are purchasing a new home. The house they've selected has a price of $350,000. The mortgage interest rate is currently 5% (regardless of the option they pick below). They are considering several options: For maturity, they are considering both 15 year and 30 year amortizations. For down payments they are considering either 10% or 20%. • 1. Calculate the amount of their monthly mortgage payment under each of the alternatives. Amortization Period (years) 15 30 2. Calculate the Total interest payments under each of the 4 alternatives: Downpayment Amortization Period (years) 15 Month 1 2 3 10% Beginning Principal Balance Downpayment 10% 20% 30 3. Assume that Bob & Kate purchase the house putting 20% down and selecting the 15 year amortization period. Construct a Mortgage Amortization Table reflecting the first 3 months of payments 20% Interest on Payment Beginning Balance Principal Repaymen Principal Balance at End of Period

Answer rating: 100% (QA)

Here are the calculations for Bob Kates mortgage options 1 Mont... View the full answer