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Covering principal and interest

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-You have contracted to buy a house for $1,042,500 paying $208,500 as a down payment and taking a fully amortized 60-year mortgage for the balance at a 9.00% annual interest rate.

-What will your monthly payment (covering principal and interest) be if you make monthly installment over the next 60 years?

-The bank has offered you a 30-year mortgage, at an interest rate of 8.1%. If you accept this offer, what will your monthly installment be over the next 30 years?

-How much interest would you save by choosing the 15-year mortgage?

Reference no: EM132555197

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