Reference no: EM132420810

1. On a $200,000 mortgage (the down payment has already been applied and $200,000 is the actual loan amount), 30 year note, 4% interest a. What would your monthly payments be?

b. How much of that payment goes toward the interest in month 1?

c. How much of that payment goes toward principal in month 1? 

d. How much of that payment goes toward interest in 10 years? (look for Oct 2029)

e. How much of that payment goes toward principal in 10 years? (look for Oct 2029)

f. After 30 years, what would the total interest paid be? 

g. What would the total cost of the house be after 30 years? (add cost of mortgage with the total cost of interest after 30 years) 

h. If you would pay an extra $50 a month, what would your total interest paid be?

i. What would the total cost of the house (mortgage amount plus total interest amount) be after 30 years with the additional $50 a month paid?

j. How much earlier would the $50 a month help you to pay off your loan? 

2. On a $200,000 mortgage (the down payment has already been applied and $200,000 is the actual loan amount), 15 year note, 4% interest

a. What would your monthly payments be?

b. How much of that payment goes toward the interest in month 1? 

c. How much of that payment goes toward principal in month 1?

d. How much of that payment goes toward interest in 10 years? (look for Oct 2029)

e. How much of that payment goes toward principal in 10 years? (look for Oct 2029)

f. After 30 years, what would the total interest paid be?

g. What would the total cost of the house be after 30 years? (add cost of mortgage with the total cost of interest after 30 years)

h. If you would pay an extra $50 a month, what would your total interest paid be?

i. What would the total cost of the house (mortgage amount plus total interest amount) be after 30 years with the additional $50 a month paid? 

j. How much earlier would the $50 a month help you to pay off your loan?

3. Give a summary of your findings. After looking at all of these different scenarios, what have you learned? How much does the interest rates, numbers of years, and down payment affect the overall payments and price of the house? How do you plan to handle your mortgage payments in the future?