Using the mortgage calculator  Determine the following:

1)Jane is going to purchase a home that is $180,000, she makes the standard down payment (20%), then she is going to obtain a mortgage for the rest. How much will Jane have paid total for the house if she does a 30-year mortgage (360 months)? Interest rate for both is 4%(.04) How much will she have paid total for the house if she does a 15-year mortgage? Worth 5 points

 

2)Jane and her spouse have a monthly net income of $5328.61 and they have a 15 year-old daughter (who plays softball). They have other miscellaneous debt totaling $6700, which results in payments of $202 a month. Do you recommend Jane play (do) a 15 year mortgage, 30 year mortgage, or is there another option you would recommend? Interest rate for both mortgages is 4% (.04) Worth 10 points

1 .$283,492- the total pay  for the house for 30 years 

    $ 227,727-the total pay  for the house for 15 years 

• I recommend Jane play a 15-year mortgage. This is because even if there is an additional debt of $ 202 a month they can still be able to manage to pay for it because the monthly payment for the house is $ 1,065. Choosing a 15-year mortgage is practical aside from the shorter the length of time they will own the house or be fully paid they can save from the interest payment.

Step-by-step explanation

$ 180,000x20%=36,000

$ 36,000(Down payment )+$144,000( Mortgage amount)+ $ 47,727( Total interest paid)=$ 227,727  15 YEARS

Mortgage amount       $ 144,000                  Monthly mortgage payment   $ 1,065        Total interest paid    $ 47,727

Amortization Schedule

$ 36,000(Down payment )+144,000( Mortgage amount)+ 103,492( Total interest paid)=$ 283,492 30 YEARS

Mortgage amount                                   Monthly mortgage payment              Total interest paid

  $144,000                                                              $687                                          $103,492

Amortization Schedule