Question

1. Lyle and Tom are each buying houses just outside of Austin. Lyle has excellent credit,

eaming him the lowest possible interest rate. Tom has a lower credit score-enough to
prevent him from qualifying for the best loan terms.​

Answer 1

Lyle's and Tom's loans have similarities and differences.

Both loans have the same time, 30 years. Also, the amount of each loan is the same, $175,000.

However, Lyle's loan has a better interest rate 4%, which is 1% lower than Tom's loan.

Additionally, due to the lower interest rate, Lyle's must pay less money each month, $835.48, while Tom has to pay $939.44 per month.