Cassie is hoping to purchase a 3 bedroom/ 3 bathroom house in her area. The house is on the market for $349,900. Her bank has given her three options for a loan:
15-year mortgage at 4.13% APR, with a required 20% down payment
20-year mortgage at 4.75% APR, with a required 10% down payment
30-year mortgage at 4.99% APR, with a required 20% down payment.
Determine Cassie's best option by finding the monthly payment, the total paid during the mortgage and the total interest paid over the loan.
I have to find the monthly payment or each year 15, 20, abd 30 year mortgage thats the main thing .. instructor is being wishy washy on the formula i sent her
M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] M = mortgage amount = 349000 - % downpayment
P = payment per month
n = # payments = years * 12
i = interest = decimal rate of interest / 12
Plug and chug
I am actually bad at this kind of stuff so anyone... PLEASE CORRECT ME IF I AM WRONG:
I got $522 for the first option, $226.11 for the second option and $375.24 for the third option.
The best option would be the second option.