Since the Johnsons want the lowest monthly payment, the recommended loan option is <u>Option B</u>.
<h3>Data and Calculations:</h3><h3>a. 30 year FHA, 3.5% down at a fixed rate of 6.25% </h3>
Monthly Pay: $1,247.75
House Price $210,000.00
Loan Amount = $202,650.00 ($210,000 - $7,350)
Down Payment = $7,350.00 ($210,000 x 3.5%)
Total of 360 Mortgage Payments = $449,190.33
Total Interest = $246,540.33
<h3>b. 30 year fixed, 20% down at a fixed rate of 6% </h3>
Monthly Pay: $1,007.24
House Price $210,000.00
Loan Amount $168,000.00 ($210,000 - $42,000)
Down Payment = $42,000.00 ($210,000 x 20%)
Total of 360 Mortgage Payments = $362,608.16
Total Interest = $194,608.16
<h3>c. 30 year fixed, 10% down at a fixed rate of 6% </h3>
Monthly Pay: $1,133.15
House Price $210,000.00
Loan Amount $189,000.00 ($210,000 - $21,000)
Down Payment = $21,000.00 ($210,000 x 10%)
Total of 360 Mortgage Payments = $407,934.18
Total Interest = $218,934.18
<h3>d. 15 year fixed, 20% down at a fixed rate 5.5%</h3>
Monthly Pay: $1,372.70
House Price $210,000.00
Loan Amount $168,000.00 ($210,000 - $42,000)
Down Payment = $42,000.00 ($210,000 x 20%)
Total of 180 Mortgage Payments = $247,086.04
Total Interest = $79,086.04
Thus, the lowest monthly payment goes with <u>Option B.</u>
Learn more about monthly payments options at brainly.com/question/2151013