What is the difference in interest paid between mortgage

Assignment Help Financial Management
Reference no: EM131887786

Mortgage Bankers Association reported the median price of a home sold in the United States in January 2015 was $199,600. Pat Radigan wants to purchase a new home for $305,500. Pat puts 20% down and will finance the remainder of the purchase. Compare the following two mortgage options he has: 10 years at 3.5% or 15 years at 5%. (Use Table 15.1). (Round your intermediate calculations and final answers to the nearest cent.)

a. Calculate Pat’s monthly payment for both the 10 and 15 year mortgage?

Monthly payment for 10 year mortgage $

Monthly payment for 15 year mortgage $

b. Calculate Pat’s total cost of interest for both the 10 and 15 year mortgage?

Total cost of interest for 10 year mortgage $

Total cost of interest for 15 year mortgage $

c. What is the difference in interest paid between 10 and 15 year mortgage?

Difference            $

Reference no: EM131887786

Questions Cloud

Write a three page report that explain your experience : Assignment: Cultural Activity Report. Write a two to three page report (500-750 words) that describes your experience.
Cellular-atp from carbohydrates : Which of the acids below causes physiologic and acid/base problems for individuals that cannot, for whatever reason
Random price movement indicate : Random price movement indicate ?
What is an example of an anatomic structure in the heart : What is an example of an anatomic structure in the heart? Elaborate about how that structure allows the heart to work the way that it does.
What is the difference in interest paid between mortgage : Calculate Pat’s monthly payment for both the 10 and 15 year mortgage? What is the difference in interest paid between 10 and 15 year mortgage?
Whta are the ethical considerations in this case : Whta are the ethical considerations in this case ? Who are the stakeholders that are harmed or benefited in this situation ?
Seeing a reemergence of diseases : Discuss some of the reasons behind this increase. Why are we seeing a reemergence of these diseases? Please cite the sources.
Briefly explain the evolutionary relationship : Briefly explain the evolutionary relationship among reptiles including birds, theropods, dinosaurs, turtles, archosaurs, lepidosaurs.
Describe three principal challenge faced by the eu and nafta : Describe three principal challenges faced by the EU and NAFTA. Next, speculate on why a BRIC alliance may be returning and whether you agree with this alliance.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd