# Find the total amount paid for each option

**Question description**

Compare the monthly payments and total and total loan cost for the following two mortgages options. Assume that both loans are fixed rate and have the same closing cost. You need to borrow $200,000.

Option 1: a 30 year loan at an APR of 10%

Find the monthly payment for each option:

The monthly payment for option 1 is ?

The monthly payment for option 2 is ?

(round to the nearest dollar)

Find the total amount paid for each option:

The total payment for option 1 is ?

The total payment for option 2 is ?

(use the answers from the previous step to find this answer)

If you have a very tight budget and need to pay as little per month as possiable, which loan is the better choice?

Option 1, beacuse it has a lower monthly payment

Option 2, because it costs less over the entire loan

## Tutor Answer

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