How much less interest will pay over the life

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Ryan and Laurie Middleton just purchased their first home with a traditional (monthly compounding and payments) 6% 30-year mortgage loan of $178,000.

Question a. How much is their monthly payment?

Question b. How much interest will they pay the first month?

Question c. If they make all their payments on time over the 30-year period, how much interest will they have paid?

Question d. If Ryan and Laurie decide to move after 7 years what will the balance of their loan be at that time?

Question e. If they finance their home over 15 rather than 30 years at the same interest rate, how much less interest will they pay over the life of the loan?

Reference no: EM132641264

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