Question

Rich and Melinda are comparing mortgages. Their mortgage is for $249,000. If they choose 15 years at 4%, their monthly payment will be $1841.82. If they choose 20 years at 5%, their monthly payment will be $1643.29.
How much will be the total payback amount for each loan?

Answer 1

Answer:

Term payback = 15 yr = $331527.6  20 yr = $394389.65 rounded up by 0.002. Shows 15 yr is $62862.05 less as result of return 5 yrs earlier.

Step-by-step explanation:

20 yr = $1643.29 at 105% = 82.1645 paid x 12 x 20 = 19719.48 interest + 1561.1257 to loan x 12 x 20 = 374670.168 total with Int at 5%=  394389.648  

15 yr=$1841.82.= $1841.82 - 73.6728= 1768.1472 to loan p/m = 20 yr 318266.496 + interest of 73.6728 = 13261.104 total with interest at 4%=331527.6