You are considering buying a new house, and have found that a $150,000, 30-year fixed-rate mortgage...

 

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You are considering buying a new house, and have found that a $150,000, 30-year fixed-rate mortgage is available with an interest rate of 4 percent. This mortgage requires 360 monthly payments of approximately $710 each. If the interest rate rises to 5 percent, what will happen to your monthly payment? Instructions: Enter your response rounded to the nearest dollar. Do not round intermediate calculations. The monthly payment will be $ Instructions: Enter your response rounded to the nearest tenth of a percent (one decimal place). Do not round intermediate calculations. The change in the monthly payment will be percent while the change in the interest rate will be percent. You are considering buying a new house, and have found that a $150,000, 30-year fixed-rate mortgage is available with an interest rate of 4 percent. This mortgage requires 360 monthly payments of approximately $710 each. If the interest rate rises to 5 percent, what will happen to your monthly payment? Instructions: Enter your response rounded to the nearest dollar. Do not round intermediate calculations. The monthly payment will be $ Instructions: Enter your response rounded to the nearest tenth of a percent (one decimal place). Do not round intermediate calculations. The change in the monthly payment will be percent while the change in the interest rate will be percent.

Answer rating: 100% (QA)

To calculate the new monthly payment when the interest rate rises to 5 percent we can use the formul... View the full answer