Mateo and Klaus have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $585,000 to cover the remaining amount and they're not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually. How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? [Blank-1] What is the total amount of interest that would be paid to the lender after 25 years of payments? [Blank-2] What if Mateo and Klaus could only afford a monthly payment of $2,500? What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? [Blank-1] What is the total amount of interest that would be paid to the lender over 25 years? [Blank-2]
Mateo and Klaus have now saved up their down payment to buy a home, but they still need to borrow to cover the rest. For the home they want this will require a mortgage of $585,000 to cover the remaining amount and they're not sure whether they could afford the monthly loan payments. The bank has offered them a mortgage interest rate of 5.15%, compounded semi-annually.
How much would they have to be able to afford to pay each month in order to pay off their mortgage in 25 years? [Blank-1]
What is the total amount of interest that would be paid to the lender after 25 years of payments? [Blank-2]
What if Mateo and Klaus could only afford a monthly payment of $2,500?
What would be the maximum mortgage amount they could afford to borrow from the bank, if all the other conditions were the same? [Blank-1]
What is the total amount of interest that would be paid to the lender over 25 years? [Blank-2]
Step by step
Solved in 3 steps with 2 images
