Question

According to online realtor Zillow a 30 year $200,000, 4.5%, fixed rate mortgage on your house will currently set your estimated monthly payments at about $1,020 per month. A 15-year fixed rate $200,000 mortgage would drop to 4.0% with monthly payments of $1,480. Approximately how much would the 15-year fixed rate mortgage save you over the length of both loans?

Answer 1

Answer:

To determine the amount saved by acquiring the 15-year mortgage instead of the 30-year mortgage, we must calculate the total payments to be made.

In the case of the 30-year mortgage, with a fixed rate of 4.5%, monthly payments of $ 1,020 per month must be made, that is, a total payment of $ 367,200 (1,020 x 12 x 30 = 367,200), with which the difference Regarding the acquired loan of $ 200,000, it will be $ 167,200.

In the case of the 15-year mortgage, with a 4% rate, the monthly payments will be $ 1,480, generating a total final payment of $ 266,400 (1,480 x 12 x 20 = 266,400), so in this case, the difference from The loan will be $ 66,400.

Therefore, between both loans, the 15-year option will save $ 100,800 more than in the case of the 30-year mortgage.

Answer 2

The 15-year mortgage option will save $ 100,800 more than in the case of the 30-year mortgage.

To determine the amount saved by acquiring the 15-year mortgage instead of the 30-year mortgage, we must calculate the total payments to be made.

In the case of the 30-year mortgage, with a fixed rate of 4.5%, monthly payments of $ 1,020 per month must be made. Then the total payment is calculated as,

$\rm Total \;\rm Payment =1020 \times 12 \times 30 = 367,200$

Then the difference regarding the loan is,

difference = $367,200 - $200,000

difference = $167,200.

 

Now, in the case of the 15-year mortgage, with a 4% rate, the monthly payments will be $ 1,480.

Then , the total final payment is,

= 1,480 x 12 x 20

= $ 266,400

so in this case, the difference from The loan will be,

=$266,400 -$200,000

= $ 66,400.

Thus we can conclude that, between both loans, the 15-year option will save $ 100,800 more than in the case of the 30-year mortgage.

Learn more about the loans and mortgage here:

https://brainly.com/question/17916444