Suppose you borrow $275,000.00 by taking out a 15 year fixed rate mortgage with a monthly payment of $1,881.05. You made a down payment of $48,400.00. (a) Calculate the Total Cost of the home, including the down payment. Round your answer to the nearest cent. Total Cost $ (b) Calculate the Total Cost of the home, including the down payment, assuming instead a 30 year fixed mortgage with a monthly payment of $1,370.87 and a down payment of $48,400.00. Round your answer to the nearest cent. Total Cost Ś (c) How do the totals compare for the 15 and 30 year loans?

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.