Business High School

It is likely that you won’t like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more total interest will you pay over the life of the loan if you take out a 30-year mortgage instead of a 15-year mortgage?.

Answers

Answer 1

Based on the amount borrowed and the term of the loan, the amount more that you will pay in total interest over the life of the loan with the 30-year mortgage is $1,079,892.

How much more interest is paid?

The total payment to be made on the 30-year mortgage is:

= 7,200.29 x 30 years x 12 months per year

= $2,592,000

Total interest paid in 30-year mortgage:

= 2,592,000 - 700,000 amount borrowed

= $1,892,000

The total payment to be made on the 15-year mortgage is:

= 8,401.18 x 15 x 12

= $1,512,212.40

Total interest paid in 15-year mortgage:

= 1,512,212.40 - 700,000

= $812,212.40

The total interest that was paid more with the 30 year mortgage than the 15 year mortgage is:

= 1,892,000 - 812,212.40

= $1,079,892

Rest of the question is:

Your friends suggest that you take a 15-year mortgage, because a 30-year mortgage is too long and you will pay a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 12% (APR).

Find out more on interest payments at https://brainly.com/question/28224394

#SPJ1

Related Questions

Other Questions
A long-distance athlete can run 12 kilometer in 3 minutes. How many kilometers can he run in an hour?1/2 km 3/60 hr=1/260/3 its a yes or no question What are the three ways to represent a proportions How do I solve this I need help please Paul had 84 fliers to post around town. Last week he posted 1/6 of them. This week, he posted 4/7 of the remaining fliers. How many fliers has he still not posted? Bones are classified as one of four types based on their shape. the bones of the cranium are examples of? ____is a water supply system defect in which a loud noise is created when a quick-closing valve, such as a clothes washer valve or ball valve, is suddenly closed. 60 in the ratio 1:3 how do i find the range of this ?? Identify the key features of the function f(x)=|x-3| How many total atoms are in 0.310 g of P2O5? The poem that talked about the maori woman not understanding why the different pills worked on different parts of her body until the doctor told her it was magic was an example of the woman finally understanding the explanation through the ________ perspective. What's developed as a result of the electron transport chain?A. Membrane potentialB. Proton gradientC. Phospholipid bilayerD. New cellshella confused some tell me its B and some say its A PENN FOSTER ! Through (-3, 1), perpendicular to y = 1/2x-5 If a union wage negotiator feels that the probabilities are 0.40,0.30,0.20 and 0.10 that the union members will get a $1.50 an hour raise, a $1.00 an hour raise,a $0.50 an hour raise, or no raise at all , find their expected raise. 3/5 ; 0.35 ; 4% ; 3/11 least to greatest Emma Jackson is thinking of starting a retail business with two friends who have extensive experience in sales and business organization. They want to determine whether they should run the business as an e-commerce website or a brick-and-mortar store. Research the pros and cons of e-commerce for businesses and recommend an option to Emma. Sonia will paint a large triangular sign with a base of 14 ft and a height of 8 ft. What is the area of the sign? whick system of measurement does the majority of the world use? Set up an equation that can be used to solve the problem. Solve the equation and determine the desired value.When sales representatives for a pharmaceutical company drive to out-of-town meetings that require an overnight stay, they receive $160 for lodging plus $0.50 per mile driven. How many miles did Joe drive if his company reimbursed him $265 for an overnight trip?The equation is ____. Joe drove ____ miles. Copy DEF to the line so that S is the vertex. This task will be complete when you have constructed an angle with vertex S that is congruent to DEF.