Question

Carl and Sue are planning to buy a new home. They will both retire in 16 years and do not want to have a house payment at that time. Which loan offer should they choose?

Answer 1

Offer 1 Offer 2
Rate:7% Rate:6%
Time(years): 30 Time (years): 25
Loan Amount: $200,000 Loan Amount: $200,000
Monthly Payment: $1,330.60 Monthly Payment: $1,288.60
Total Financed:$479,017.80 Total Financed: $386,580.84

Offer 3
Rate:5%
Time (years): 15
Loan Amount: $200,000
Monthly Payment: $1581.59
Total Financed: $284,685.71

Whew, this was time-consuming! ʕ•ᴥ•ʔ