Mr. Smith is purchasing a $ 170000 house. The down payment is 20 % of the price of the house. He is given the choice of two mortgages: a) 25-year mortgage at a rate of 7 % (i) the monthly payment:  (ii) the total amount of interest paid: b) 15-year mortgage at a rate of 7 %. (i) the monthly payment:  (ii) the total amount of interest paid:

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Q: Find the closing costs (in $).

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Q: The Smiths are heir outstand a) Under their heir monthly r b) How much

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.