Discussion Board - Mortgages

School: Academy of Healing Arts Massage and Facial Skin Care           Price: $10.00 USD

Document Description

Find a home that is for sale in your area (purchase price must be at least $20,000). The house that I found costs $279,900

You will finance 80% of the purchase price. Using 5% as the interest on your 30-year fixed rate mortgage, calculate the monthly payment using the factor table from the textbook.
Calculate the payment using the same 5%, but for a 15-year mortgage.
Real estate taxes amount to 1% of the sales price and the insurance premium is .5% of the sales price per year. Calculate the total monthly PITI payment.
Present your findings to your classmates and explain how much interest you would save over the life of the loan if you used the 15-year versus the 30-year loan. Show your calculations.

Written By

Studypool Tutor
Academy of Healing Arts Massage and Facial Skin Care
Solution:The cost of the property is $279,900Requirement 1Finance Amount = $279,900 * 80% = $223920Interest Rate = 5%Period = 30 yearsAnnual Payment = 223920/15.3725 = $14566.27Requirement 2Finance Amount = $279,900 * 80% = $223920Interest Rate = 5%Period = 15 yearsAnnual Payment = 223920
lock_open Buy Document

Reviews from Students

Studypool Student
"Excellent work as usual"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1829 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors