Question: Let's see how much a lower mortgage rate might save. Suppose you want to get a $200,000, 30-year mortgage. The monthly payments for different mortgage

Let's see how much a lower mortgage rate might save. Suppose you want to get a $200,000, 30-year mortgage. The monthly payments for different mortgage interest rates are given in the table below and can easily be computed on Excel. Mortgage Interest Rate (APR) Monthly Payment Total cost of mortgage 6% $1,199.10 5% $1073.64 30 12 $1073.64 = $386,510.40 4% $954.83 1. Find the total cost of the mortgage over 30 years at a. APR = 4% b. APR = 6% 2. A 6% mortgage costs you how much more over 30 years than a 4% mortgage? 3. The total cost of a 30-year mortgage at 6% is what percent more than the total cost of a 30- year mortgage at 4%?

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