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 $195,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at interest?

Loan amt. = 0.8 * 195,000 = $156,000

P = Po*r*t/(1-(1-(1+r)^-t)

r = (6%/12)/100% = 0.005 = Monthly % rate expressed asva decimal.

t = 30yrs * 12mo/yr = 360 Months.

P1 = (156000*0.005*360)/(1-1.005^-360) =
$336,707.57
I = P-Po =

P2 = (195000*0.005*360)/(1-1.005^-360) =
$420,884.47
I = P2-Po

Correction:

P = (Po*r*t)/(1-(1+r)^-t).

To calculate the difference in interest paid on a $195,000 home with a 20% down payment and a 30-year mortgage at 6% interest compared to a different interest rate, we need to know the specific interest rate in order to compare.

However, I can explain the process of calculating the interest difference for you. Here's how you can do it:

1. Calculate the loan amount: Since you are putting 20% down on a $195,000 home, the loan amount will be 80% of the purchase price.

Loan amount = Purchase price - Down payment
Loan amount = $195,000 - ($195,000 x 0.20)
Loan amount = $195,000 - $39,000
Loan amount = $156,000

2. Determine the interest rate: In order to calculate the difference, we need to know the specific interest rate for the second mortgage. Let's assume it is 5% for this example.

3. Calculate the monthly payment for both scenarios: Use a loan repayment calculator or a mortgage calculator to determine the monthly payment for the 30-year mortgage with 6% interest and the 30-year mortgage with 5% interest.

For the 6% interest rate:
Monthly payment = Loan amount x (monthly interest rate / (1 - (1 + monthly interest rate)^(-number of months)))

For the 5% interest rate:
Monthly payment = Loan amount x (monthly interest rate / (1 - (1 + monthly interest rate)^(-number of months)))

Calculate the difference between the monthly payments.

4. Calculate the total interest paid: Multiply the monthly payment by the number of months in the loan term (30 years x 12 months/year) to get the total amount paid over the duration of the loan.

Total interest paid = Monthly payment x (number of months in the loan term) - Loan amount

5. Calculate the interest difference: Subtract the total interest paid for the 5% interest rate mortgage from the total interest paid for the 6% interest rate mortgage.

Interest difference = Total interest paid (6% interest rate mortgage) - Total interest paid (5% interest rate mortgage)

By going through these steps and plugging in the specific interest rate, you can calculate the difference in interest paid on the $195,000 home with a 20% down payment and a 30-year mortgage at different interest rates.