Business, 16.03.2020 16:09 sammizwang

You’ve decided to buy a house that is valued at $1 million. You have $300,000 to use as a down payment on the house, and want to take out a mortgage for the remainder of the purchase price. Your bank has approved your $700,000 mortgage, and is offering a standard 30-year mortgage at a 12% fixed nominal interest rate (called the loan’s annual percentage rate or APR). Under this loan proposal, your mortgage payment will be per month. (Note: Round the final value of any interest rate used to four decimal places.)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 10% (APR), then the difference in the monthly payment of the 15-year mortgage and 30-year mortgage will be ?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 mu Ch 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? A. $1, 183, 258.37 B. $1, 097, 515.01 C. $857, 433.60 D. $1, 011, 771.65Which of the following statements is not true about mortgages? A. The payment allocated toward principal in an amortized loan is the residual balance-that is, the difference between total payment and the interest due. B. Mortgages always have a fixed nominal interest rate. C. Mortgages are examples of amortized loans. D. The ending balance of an amortized loan contract will be zero.

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You’ve decided to buy a house that is valued at $1 million. You have $300,000 to use as a down payme...

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