Question

Please help also how did u get ur answer

Your friends are purchasing a house for $182,000.

If they put 20% down, how much will they borrow for their mortgage?


The bank agreed to an APR of 3.15% for a 15 year mortgage. According to Excel, the monthly mortgage payment would be $1016.02. If your friends accept this loan, how much will they pay in total over the lifetime of the loan?

How much would be paid on interest over the life of the loan?

Answer 1

• Monthly Payment $2,741
• Monthly Payment $676

Explanation:

A down payment is the upfront portion of a payment that is often required to finalize the purchase of items that are typically more expensive, such as a home or a car. When purchasing a home, after a down payment is paid by a home-buyer, any remaining balance will be amortized as a mortgage loan that must be fulfilled by the buyer. In other words, the purchase price of a house should equal the total amount of the mortgage loan and the down payment. Often, a down payment for a home is expressed as a percentage of the purchase price. As an example, for a $250,000 home, a down payment of 3.5% is $8,750, while 20% is $50,000.