1) Egbert has decided to buy a house. He has found 2 houses he's comparing. House A is listed at $140,000.00 and House B is $160,000.00. If he can get a 15-year or 30-year mortgage at 4.375%, calculate the monthly payments of both houses for each mortgage. Type your answers into the table. Then find the total cost and the total interest for each house. Type those results into the table below. House A $140,000.00 House B $160,000.00 Length of loan: The monthly payment: The total cost of the loan: The total interest you paid over the course of the loan 15 years 30 years | 15 Years | 30 Years 2) For the 30-year mortgages, how much more per month is the payment for house B over house A? 3) For the 15-year mortgages, how much more is the total cost of house B over house A?
1) Egbert has decided to buy a house. He has found 2 houses he's comparing. House A is listed at $140,000.00 and House B is $160,000.00. If he can get a 15-year or 30-year mortgage at 4.375%, calculate the monthly payments of both houses for each mortgage. Type your answers into the table. Then find the total cost and the total interest for each house. Type those results into the table below. House A $140,000.00 House B $160,000.00 Length of loan: The monthly payment: The total cost of the loan: The total interest you paid over the course of the loan 15 years 30 years | 15 Years | 30 Years 2) For the 30-year mortgages, how much more per month is the payment for house B over house A? 3) For the 15-year mortgages, how much more is the total cost of house B over house A?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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If you can also show the work that would be appreciated thank you :)
Transcribed Image Text:115
Name:
Mortgage - Activity #6
Part A:
1) Egbert has decided to buy a house. He has found 2 houses
he's comparing. House A is listed at $140,000.00 and
House B is $160,000.00. If he can get a 15-year or 30-year
mortgage at 4.375%, calculate the monthly payments of
both houses for each mortgage. Type your answers into the
table. Then find the total cost and the total interest for each
house. Type those results into the table below.
House A $140,000.00 House B $160,000.00
Length of loan:
15 years
30 years
15 Years
30 Years
The monthly
payment:
The total cost of
the loan:
The total interest
you paid over the
course of the loan
2) For the 30-year mortgages, how much more per month is
the payment for house B over house A?
3) For the 15-year mortgages, how much more is the total cost
of house B over house A?
4) What are the advantages of obtaining a 15-year loan instead
of a 30-year loan?
5) What are the advantages of obtaining a 30-year loan instead
of a 15-year loan?
6) A house payment is supposed to cost no more than 28% of
your income. If that were the case, what would Egbert's
annual salary have to be to buy each house?
House A $140,000.00 House B $160,000.00
Length of
loan:
15 years
30 years
15 Years | 30 Years
Annual
salary:
Transcribed Image Text:Part B:
1) Egberta's pie business is so good she is looking for a retail
space. She has found a store for $75,000.00. For her
mortgage she gets the following quote: 15 years at 4.5%, 20
years at 4.75% and 30 years at 4.875%. Calculate the
monthly payments for each mortgage. Type your answers
into the table. Then find the total cost and the total interest
for each house. Type those results into the table below.
Length of loan:
15 years 20 years 30 Years
Interest Rate:
4.5%
4.75% 4.875%
The monthly payment:
The total cost of the
loan:
The total interest you
paid over the course of
the loan
Monthly gross sales
needed:
2) For a retail business, the mortgage payment should not
exceed 17% of gross sales for the month. For each
mortgage calculate the gross sales needed to afford the loan
for each of the loans and add it to the last line of the table
above.
3) If her current month sales are $3350.00 which mortgage can
she afford?
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