You need to borrow $250,000 for a house. Your three loan options are:

1- 10 year fixed rate mortgage at 6.3%

2- 15 year fixed rate mortgage at 6.2%

3- 30 year fixed rate mortgage at 6.1% 

All three mortgages have monthly compounding and monthly payments. 

Discuss what is the best option, taking into account monthly payments, total payments and interest paid.

 

You loan $4000 to a desperate acquaintance, charging them 150% interest compounded monthly. If they don't make any payments.

How many months does it take for them to owe you $8000 (including the original $4000 they borrowed as well as $4000 in interest)?

Answer rating: 100% (QA)

To determine the best mortgage option for borrowing 250000 lets calculate the monthly payments total payments and interest paid for each option Option 1 10year fixedrate mortgage at 63 Loan amount 250... View the full answer