You are considering buying a house. The home is currently listed for $750,000. Terms for the loan from your local bank are listed at 6.5% interest compounded monthly for a 30-year fixed rate mortgage with no fee’s. The bank would require you to put 20% as a down payment on the house, which would mean a loan to value of 80%. What would your monthly mortgage payment be on the loan? What is the total amount you will pay for the house? How much total interest will you pay over the course of the loan?
You are considering buying a house. The home is currently listed for $750,000. Terms for the loan from your local bank are listed at 6.5% interest compounded monthly for a 30-year fixed rate mortgage with no fee’s. The bank would require you to put 20% as a down payment on the house, which would mean a loan to value of 80%. What would your monthly mortgage payment be on the loan? What is the total amount you will pay for the house? How much total interest will you pay over the course of the loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
You are considering buying a house. The home is currently
listed for $750,000. Terms for the loan from your local bank
are listed at 6.5% interest compounded monthly for a 30-year
fixed rate mortgage with no fee’s. The bank would require you
to put 20% as a down payment on the house, which would mean a
loan to value of 80%. What would your monthly mortgage payment
be on the loan?
What is the total amount you will pay for the house?
How much total interest will you pay over the course of the
loan?
listed for $750,000. Terms for the loan from your local bank
are listed at 6.5% interest compounded monthly for a 30-year
fixed rate mortgage with no fee’s. The bank would require you
to put 20% as a down payment on the house, which would mean a
loan to value of 80%. What would your monthly mortgage payment
be on the loan?
What is the total amount you will pay for the house?
How much total interest will you pay over the course of the
loan?
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