Determine the monthly payment for mortgage

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Reference no: EM133078770

1. Determine the monthly payment for each mortgage. The interest is compounded monthly.

 

Mortgage amount

Amortization period

Interest rate

a

$185000

25 years 

6.26%

b

$220000

30 years

5.75%

2. Determine the total interest paid for each of questions in question 1. 

3. Ashlee purchased a house for $875 000. She made a down payment of 15% of the purchase price and took out a mortgage for the rest. The mortgage has an interest rate of 6.95% compounded monthly, and amortization period of 20 years, and a 5-year term. Calculate Ashley's monthly payment.

4. The Vaughan's have a mortgage of $725 000 amortized over 25 years at 4.25% compounded monthly. After the original 4-year term, the mortgage is renewed at 4.0% compounded monthly. Calculate the new monthly payment.

5. A bank charges 7.75% compounded monthly on a mortgage. The Markins have an excellent credit rating. They negotiated a rate of 7% compounded monthly on a mortgage on $230 000 amortized over 25 years. By how much did the Markins reduce their monthly payment by negotiating the lower rate of interest?

Reference no: EM133078770

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