Duke was approved for a 30 year conventional loan for $250,000 at 3.65% fixed rate. He was also approved for a 15 year conventional loan for $250,000 at 3.45% fixed rate. He has $20,000 to put as a down payment. He has to pay insurance of $1400 a year and property tax of $2500 a year. Use time value of money to figure out the best options for Duke. If he looks at a house that is $150,000 how much would he pay per month with a 15 year loan?
Duke was approved for a 30 year conventional loan for $250,000 at 3.65% fixed rate. He was also approved for a 15 year conventional loan for $250,000 at 3.45% fixed rate. He has $20,000 to put as a down payment. He has to pay insurance of $1400 a year and property tax of $2500 a year. Use time value of money to figure out the best options for Duke.
- If he looks at a house that is $150,000 how much would he pay per month with a 15 year loan?
Any sum borrowed to meet some personal or business funding requirements is regarded as a loan/mortgage. The mortgage is generally paid via a series of periodic payments. These periodic payments are generally inclusive of the principal payment along with the interest payable. The choice between the numerous borrowing options depend on multiple factors like the tenure, interest rate, periodic payment etc.
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