I'm hoping to purchase my dream home next month. It's $1,000,000 but fortunately I have two...

 

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I'm hoping to purchase my dream home next month. It's $1,000,000 but fortunately I have two financing options at my bank: A) 6%, 30-year fixed mortgage with no associated bank fees B) 4%, 15-year fixed mortgage with $10,000 processing fee that will be added to the amount financed The first payment on each mortgage is due at the end of the first month. How much more are my total financing costs under Mortgage A compared to Mortgage B? Numeric Response I'm hoping to purchase my dream home next month. It's $1,000,000 but fortunately I have two financing options at my bank: A) 6%, 30-year fixed mortgage with no associated bank fees B) 4%, 15-year fixed mortgage with $10,000 processing fee that will be added to the amount financed The first payment on each mortgage is due at the end of the first month. How much more are my total financing costs under Mortgage A compared to Mortgage B? Numeric Response

Answer rating: 100% (QA)

Solution Mortgage A Principal 1000000 Interest Rate 6 Term 30 years Monthly Payment 599583 Total Fin... View the full answer