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Studocu is not sponsored or endorsed by any college or university Mortgage Loans - Dunia Abdallah Mathematics for the Modern World (Henry Ford College) Studocu is not sponsored or endorsed by any college or university Mortgage Loans - Dunia Abdallah Mathematics for the Modern World (Henry Ford College) Downloaded by Mahdi Jaber (mjaber13@hawkmail.hfcc.edu) lOMoARcPSD|31079781

Asking Price: $436,000 Website House Listed at: Realtor.com Number of Bedrooms: 4 Number of Bathrooms: 2 full, 1 half bath Square Footage: 2,567 sq. ft Lot Size: 0.34 acres lot Downloaded by Mahdi Jaber (mjaber13@hawkmail.hfcc.edu) lOMoARcPSD|31079781

Part 1:  How much total interest would you pay for the loan? I took my Monthly Payment and multiplied it Monthly Term $1848.419699 x 360 = $655,431.09164 Then I took the answer that I got from my Monthly Payment when I multiplied it by the Monthly Term then I subtract it by my 80% financed and that is $87,200. $655,431.09164 - $87,200 = $568,232.09164  To the nearest whole percent, what percent of your payments would go to interest? I took my answer that I got from part A the ($568,232.09164) then I divided it by the first answer when I took the Monthly Payment and multiplied it by the Monthly Term (Basically I divided the total interest by the total of payment) $568,232.09164/$655,431.09164 = 0.86695 Move the decimal to the right, it’s 8.6695% To the nearest whole number, it’s 9% Part 2:  How much total interest would you pay for the loan? I took my Monthly Payment and multiplied it by the Monthly Term which is for this part 180 $2,601.93 x 180 = $468,347.4 Then I took the answer that I got from my Monthly Payment when I multiplied it by the Monthly Term then I subtract it by my 80% financed and that is $87,200 $468,347.4 - $87,200 = $381147.4  To the nearest whole percent, what percent of your payments would go to interest? I took the answer from Part A the ($381147.4) then I divided it by the first answer when I took the Monthly Payment and multiplied it by the Monthly Term (Basically, I divided the total interest by the total of payment) $381147.4 /$468,347.4 = 0.81381 Move the decimal to the right 8.1381% Rounded to the nearest whole percent it’s 8%  How much less interest would you pay then you would’ve for the 30-year loan? 1% interest less then I would have pay for the 30-year loan of 9%  Does anything surprise you about the last two answers? Explain why? Downloaded by Mahdi Jaber (mjaber13@hawkmail.hfcc.edu) lOMoARcPSD|31079781

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Yes, I was surprised by the last two answers. I expected the percentage of my payments towards interest would be half of the 30-year loan (360). The difference was only 1% which was not half since the 30-year loan was 9% and the 15-year loan was 8%. Part 3:  How much total interest would you pay for the loan? I did the same thing on how I did the first two parts I took my Monthly Payment x my Monthly Term and that is 229 Months because it’s the month that I stop paying my loan. $2,348.42 x 229= $537788.18 Then I took the answer that I got from my Monthly Payment when I multiplied it by the Monthly Term then I subtract it by my 80% financed and that is $87,200 $537788.18- $87,200 = $450,588.18  To the nearest whole percent, what percent of your payments would go to interest? I took my answer that I got from part A the ($450,588.18) then I divided it by the first answer when I took the Monthly payment and multiplied it by the Monthly Term (Basically, I divided the total interest by the total of payment) $450,588.18/$537,788.18= 0.83785 Move the decimal to the right 8.3785% To nearest whole number it’s 8%  How long would it take to repay the loan? Looking at the table in excel spreadsheet it would take me about 229 months to repay my loan, that is 19 years.  How much less interest would you pay than you would have without the extra payment? Without the extra payment I would’ve paid 9% interest but with the extra payment ($500) I would have paid 8% interest. So that is a better deal and it is faster because it takes me about 19 years to pay my loan rather than 30 years to pay my loan.  Does anything surprise you about your answer to the previous answer two questions? Explain why or why not? Yes, the interest was not as low as I expected it to be. The time it would take be to pay off the 30- year loan was shorter because of the extra payment, which I was not surprised about. It should be shorter than 30 years because I would be paying more than the minimum monthly payment. Citations Downloaded by Mahdi Jaber (mjaber13@hawkmail.hfcc.edu) lOMoARcPSD|31079781

https://www.realtor.com/realestateandhomes-detail/17116-Cameron- Dr_Northville_MI_48168_M35407-58088#photo0 https://www.realtor.com/mortgage/rates/? reference=web_ldp_pymt_cta1#ref=listingdetail&mlid=612554893&mprid=3540758088&zi p=48168&property_price=436000&iid=TXTLDP2 https://www.realtor.com/mortgage/rates/? reference=web_ldp_pymt_cta1#ref=listingdetail&mlid=612554893&mprid=3540758088&zi p=48168&property_price=436000&iid=TXTLDP2 Downloaded by Mahdi Jaber (mjaber13@hawkmail.hfcc.edu) lOMoARcPSD|31079781

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