Is the alternative mortgage worth considering

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Reference no: EM131856851

House purchase for 150,000 and down payment of 30,000 at closing of 120,000 mortgage at 8% interest and zero points. Monthly annuity payments to amortize loan over 30 years.

1. Calculate the monthly annuity payment! Loan balance after 10 years? 20 years?

2. Interest and principal payment at end of 120th month? Assume alternative 30-year mortgage (financing) is offered at 7.75% interest making monthly payments for a charge of 2 points up-front.

3. Is the alternative mortgage worth considering? Brief explanation.

Reference no: EM131856851

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