Answer:
The difference in monthly payment is:
= $2,098.18.
Explanation:
a) Data and Calculations:
Cost of the Mortgage House = $1,000,000
Down payment = $200,000 or 20%
Mortgage interest rate = 4%
Period of Mortgage amortization = 30 or 15
From an online financial calculator:
Monthly Pay: $3,819.32
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 360 Mortgage Payments $1,374,956.05
Total Interest $574,956.05
Mortgage Payoff Date Apr. 2051
Monthly Pay: $5,917.50
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 180 Mortgage Payments $1,065,150.61
Total Interest $265,150.61
Mortgage Payoff Date Apr. 2036
Monthly payment for 15 years = $5,917.50
Monthly payment for 30 years = 3,819.32
Difference in monthly payment = $2,098.18
