Question: Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate the reduction in

Increasing the down payment on a mortgage reduces both the size of

Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid. Calculate the reduction in the monthly payment by increasing the down payment by the amount specified, and the amount saved on interest over the life of the loan. Assume the mortgage is for 20 years and use the table to find the monthly payments. Monthly payments on a $1,000 loan. Number of Years for the Loan Annual Interest Rate 3 10 20 30 4% $29.53 $22.58 $10.12 $6.06 $4.77 5% 29.97 23.03 10.61 6% 30.42 23.49 6.60 5.37 11.10 7.16 6.00 8% 31.34 24.41 12.13 8.36 7.34 10% 32.27 25.36 13.22 9.65 8.78 12% 33.21 26.33 14.35 11.01 10.29 Amount Interest Down Increase in of Loan $243,000 Rate Payment Down Payment 5% $52,000 $23,000 $123.51, $29,642.40 $164.68, $39,523.20 $151.80, $36,432.00 $139.38, $33,451.20

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