What is the approximate difference in your mortgage payment

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Reference no: EM133265614

Question: One year ago, you could have purchased a home for $400,000, making a 20% downpayment and borrowing the rest through a 30 year loan at a rate of 3%. If over the past year, home prices rose by 20% and prevailing mortgage rates have risen to 6.5% (for similar 80% loan to value mortgages), what is the approximate difference in your mortgage payment today if you bought the house at the current price and under current mortgage terms?"

a. Lower by 15%

b. Higher by 80%

c. Higher by 30%

d. Higher by 50%

Reference no: EM133265614

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