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 visited a few new developments and sccanned the real estate listings of preowned homes, but they really have no idea how much a mortage payment would be on a $150,000, $175,000, or $200,000 loan. Thay have come to you for advice.

Question

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 visited a few new developments and sccanned the real estate listings of preowned homes, but they really have no idea how much a mortage payment would be on a $150,000, $175,000, or $200,000 loan. Thay have come to you for advice.

Question 1 & 2 posted under scinerio:
Thank you for your help!!!

Answer 1

After you explain to them that they can borrow money at different rates and for different amounts of time, they ask you to complete a chart indicating what the monthly mortgage payment would be under some possible inerest rates and borrowing periods. They also want to know what their total interest would be on each if they chose a 25 year loan. Chart:

Amount 6.25% 6.5% 6.75% 7% tot
Borrowed 15yr 20yrs 25yrs 30yrs pd.
150,000
175,000
200,000

Answer 2

If they made a down payment of $20,000 on 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?

Answer 3

Of course, I'll be happy to help you calculate the mortgage payments for loans of $150,000, $175,000, and $200,000. To calculate the mortgage payments, we need to consider the loan amount, interest rate, and loan term.

First, we need to find out the interest rate and loan term that Shantel and Kwamie are considering. The interest rate is the annual percentage rate (APR) charged by the lender, and the loan term is the number of years they plan to take to repay the loan.

Once we have these details, we can use a mortgage calculator to determine the monthly mortgage payment. There are several online mortgage calculators available that can help with this calculation. One popular website is Bankrate.com.

Here's how you can use the mortgage calculator on Bankrate.com to calculate the mortgage payment:

1. Go to Bankrate.com or search for "mortgage calculator" on your preferred search engine.
2. On the mortgage calculator page, enter the loan amount (e.g., $150,000, $175,000, or $200,000).
3. Enter the interest rate (e.g., 4%, 4.5%, etc.) and loan term (e.g., 30 years).
4. Click on the "Calculate" or "Calculate Mortgage" button.

The calculator will display the monthly mortgage payment based on the given loan amount, interest rate, and loan term. It will also show a breakdown of the payment, including the principal and interest portions.

By using this calculator, you can input different loan amounts and compare the resulting mortgage payments for $150,000, $175,000, and $200,000 loans.

Remember that the mortgage payment will also include property taxes, homeowner's insurance, and possibly mortgage insurance, depending on the down payment amount. These additional costs should be factored in when considering the overall affordability of the mortgage.

I hope this helps! Let me know if you have any other questions.