Charmaine works as a loan officer in a bank. She processes the applications for house mortgages for four different customers on the same day. All four mortgages have the same rate of interest and terms except for the following. Who will pay the most interest over the life of the mortgage? 1. The Smiths' mortgage is amortized over 20 years with monthly payments and no prepayment options 2. The Wongs' mortgage is amortized over 25 years with weekly payments and not prepayment options

3. The Roberts' mortgage is amortized over 25 years with monthly payments and no prepayment options

4. The Mehtas' mortgage is amortized over 25 years with monthly payments and the option to repay up to 10% of the principal once each year, which they will utilize.

Who will pay ment most interest over the life of the mortgage?

Answer rating: 100% (QA)

Lets analyze each scenario 1 The Smiths mortgage 20 years monthly payments no prepayment options ... View the full answer