posted by Heyhi
Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $194,000 home if you put 30% down and financed the remaining amount with a 30-year mortgage at 5.5% interest compared to a 30-year mortgage at 3.5% interest? (Use the amortization worksheet.)
What does the credit rating have to do with the calculations of the problem ?
What "they" probably want you to do is find the payment in each case (see my previous solution), multiply each by 360, then subtract the original home value from each one.