CNBC.com reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed rate mortgages to 4.03%. Dennis Natali wants to purchase a vacation home for $235,000 with 20% down. Calculate his monthly payment for a 20-year mortgage at 3.5%. Calculate total interest. (Use Table 15.1). (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment:
CNBC.com reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed rate mortgages to 4.03%. Dennis Natali wants to purchase a vacation home for $235,000 with 20% down. Calculate his monthly payment for a 20-year mortgage at 3.5%. Calculate total interest. (Use Table 15.1). (Do not round intermediate calculations. Round your answer to the nearest cent.) Monthly payment:
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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CNBC.com reported mortgage applications increased 9.9% due to a decrease in the rate on 30-year fixed rate mortgages to 4.03%. Dennis Natali wants to purchase a vacation home for $235,000 with 20% down. Calculate his monthly payment for a 20-year mortgage at 3.5%. Calculate total interest. (Use Table 15.1). (Do not round intermediate calculations. Round your answer to the nearest cent.)
Monthly payment: ??
Total interest: ??
Transcribed Image Text:# Table 15-1: Amortization Table (Mortgage Principal and Interest per $1,000)
This table provides a detailed view of the amortization of a mortgage loan, calculated based on varying interest rates and terms. The values presented indicate the monthly principal and interest payment per $1,000 of the loan amount.
### Table Structure
- **Columns:** Represent different interest rates ranging from 3½% to 11%.
- **Rows:** Correspond to the term of the loan in years, ranging from 10 to 35 years.
### Detailed Breakdown
**Interest Rates (top horizontal row):**
- 3½%, 5%, 5½%, 6%, 6½%, 7%, 7½%, 8%, 8½%, 9%, 9½%, 10%, 10½%, 11%
**Loan Terms in Years (vertical column):**
- 10, 12, 15, 17, 20, 22, 25, 30, 35
**Highlighted Section:**
- The column with 9% interest is highlighted for emphasis.
### Example Data Points
- For a **10-year loan at 9% interest**, the monthly payment is **$12.67** per $1,000.
- For a **25-year loan at 7% interest**, the monthly payment is **$7.07** per $1,000.
- For a **35-year loan at 5% interest**, the monthly payment is **$5.05** per $1,000.
This table serves as a tool for understanding how changing interest rates and loan terms impact the monthly payment obligations for a mortgage. It is essential for financial planning and comparison of loan options.
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