Stephen has just purchased a home for ​$151,000. A mortgage company has approved his loan application for a​ 30-year fixed-rate loan at 5.25​%. Stephen has agreed to pay 30​% of the purchase price as a down payment. How much would​ Stephen's monthly payment increase for a​ 20-year mortgage over a​ 30-year mortgage? LOADING... Click the icon to view the table of the monthly payment of principal and interest per​ $1,000 of the amount financed.       The monthly payment would increase by ?

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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.