question archive Loan Scenario 2: In this scenario, your financial institution is offering you a 15-year fixed mortgage with a 10% down payment at a 2
Loan Scenario 2: In this scenario, your financial institution is offering you a 15-year fixed mortgage with a 10% down payment at a 2
Subject:MathPrice: Bought3
Loan Scenario 2: In this scenario, your financial institution is offering you a 15-year fixed mortgage with a 10% down payment at a 2.97% fixed rate.
Determine the following: $75500 PURCHASE PRICE
- Calculate the down payment for this loan.
- How much will you need to finance from the bank for this loan?
- What is your monthly payment? Use technology or the monthly payment formula in your text to get the monthly payment for this loan.
- What is the total cost of the loan over 15 years? How much of this cost is interest?
- What is the total you will expect to pay at closing for this loan option? Closing costs must be paid before a bank will finance your loan. These costs include a fee to close, the down payment, and first month's mortgage payment. Assume the fee to close a loan is $2700.
- What are the advantages of this loan? What are the disadvantages?
