You are considering purchasing a house Collin County that costs $350,000. You debating whether to finance the house or 30 years. The 15-year mortgage allou to pay off the bouse auicker -t intorc

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
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You are considering purchasing a house in
Collin County that costs $350,000. You are
debating whether to finance the house for 15
or 30 years. The 15-year mortgage allows you
to pay off the house quicker at an interest rate
of 2%. However, the 30-year mortgage offers
a lower mortgage payment at an interest rate
of 2.75%. Which of the following answers is
closest to the difference between the 15 and
30-year monthly mortgage payment?
A) 800
B) 600
C) 400
D) 1200
E) 1000
Transcribed Image Text:You are considering purchasing a house in Collin County that costs $350,000. You are debating whether to finance the house for 15 or 30 years. The 15-year mortgage allows you to pay off the house quicker at an interest rate of 2%. However, the 30-year mortgage offers a lower mortgage payment at an interest rate of 2.75%. Which of the following answers is closest to the difference between the 15 and 30-year monthly mortgage payment? A) 800 B) 600 C) 400 D) 1200 E) 1000
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