Posted by **Blaire** on Thursday, September 29, 2011 at 10:31pm.

Mr. Hobbs was just about to take out a home mortage of $120,000 for 20 yrs at the rate of 10.0% compounded monthly. The monthly payments would have been $1158.03. But a competitive bank offered him a 30 yr mortgage at 9,5% which has monthly payments of $1009.03. Mr Gibbs went with the second bank because he assumed that a lower monthly payment and a lower interest rate would be a better bargain. Assuming that he could afford the higher payment; do you think he did the right thing? Explain your answer

## Answer This Question

## Related Questions

- math - Mr. Hobbs was just about to take out a home mortage of $120,000 for 20 ...
- CONSUMER MATH - You are offered $12,000 for an annuity at 3.9% compounded ...
- Math - 4. Vanna has just financed the purchase of a home for $200 000. She ...
- math formulas - 4. Vanna has just financed the purchase of a home for $200 000. ...
- Math 11 - The Colebeck's are purchasing a cottage for $120 000. They have a down...
- Finance - Sandy is offered an annuity at 3.9% compounded monthly to save the $...
- Math - If you finance $50,000 of the purchase of your new home at 4.40% ...
- MATH - Dave takes out a 24-year mortgage of 210,000 dollars for his new house. ...
- Finance - Annuities - You have just graduated from the MBA program and to reward...
- Finance - Loans problem please help - A company borrows $170000, which will be ...

More Related Questions