Math

posted by Chol

Shantle and Kwamie are planning to buy their first home. Although they are excited about the prospect of being homeowners, they are also a little frightened. A mortgage payment for the next 30 years sounds like a huge commitment. They visited a few developments and scanned the real estate listings of per owned homes, but they really have no idea how much a mortgage payment would be on a \$150,000, \$175,000, or \$200,000 loan. They have come to you advice.

After you explain to then that they can borrow money at different amounts of time, Shantel and Kwamie ask you to complete a chart indicating what the monthly mortgage payment would be under some possible interest rates and borrowing periods. They also went to know what their total interest would be on each if they chose a 25-year loan. Complete the chart.
Amount 6.25% 6.5% 6.75% 7% total interest
borrowed 15 yrs 20 yrs 25 yrs 30 yrs Paid
\$150,000
\$175,000
\$200,000

2. If Shantel and Kwamie made a down payment of \$200,000 or a \$175,000 home, what would be their monthly mortgage payment assuming they finance for 25 years at 6.75%? How much would they save on each monthly payment by making the down payment? How much interest would they save over the life of the loan?

Similar Questions

1. Math

please check my answer thanks :) Mike purchased a home the mortgage is \$235,000 at 8 3/4 % for 25 years. His annual property taxes on the home are \$6,345 he also has to pay hazzard insurance in the amount of \$1,479. What is the PITI …
2. Bus math case study 12.1

Shantel and Kwamie are planning to buy their first home. Although they are excited about the prospect of being homeowners, they are also a little frightened. A mortgage paymetn for the next 30 years sounds like a huge commitment. They …
3. math

Shantel and Kwamie are planning to buy their first home
4. REFINANCE MATH PROBLEM

I screwed up the first post with this question so re posting to find some help. A person purchased a 225463 home 10 years ago by paying 10% down and sighning a 30 year mortgage at 8.7% compounded monthly. Interest rates have dropped …
5. finance mortgage payment

your mortgage payment is \$1,500 per month. Of this amount, insurance is %50, property taxes are \$200, and interest averages about \$1,100. Assuming you have other itemized deductions that already exceed your standard deduction and that …
6. finance

You decide to buy a new home for \$101000.00 at 7.5% interest rate. You feel that you can afford \$800.00 for a mortgage payment. You make a down payment of \$10000.00 How much will you still owe after making payments for one year. Show …
7. Finance

If a home buyer purchases a home in 2006 for \$225,000 with a 10% down payment using a 30 year fixed mortgage rate at 6.5% and 3.5% closing costs added to the original mortgage, compute the following: a) the original amount of the mortgage …
8. Finance

You just turned 50 years old and are planning to retire in 15 years. You have decided you would like to receive an annuity rather than managing a lump sum. If you invest \$12,500 at the end of each of the next 10 years, what will your …
9. Finance

Audrey Sanborn has just arranged to purchase a \$550,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage has a 6.1 percent stated annual interest rate, compounded monthly, and calls for equal monthly payments …