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Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to ma...Asked by TYRONE
Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 700 or higher. How much more interest would you pay on a $195,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at interest?
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Answered by
Henry
Loan amt. = 0.8 * 195,000 = $156,000
P = Po*r*t/(1-(1-(1+r)^-t)
r = (6%/12)/100% = 0.005 = Monthly % rate expressed asva decimal.
t = 30yrs * 12mo/yr = 360 Months.
P1 = (156000*0.005*360)/(1-1.005^-360) =
$336,707.57
I = P-Po =
P2 = (195000*0.005*360)/(1-1.005^-360) =
$420,884.47
I = P2-Po
P = Po*r*t/(1-(1-(1+r)^-t)
r = (6%/12)/100% = 0.005 = Monthly % rate expressed asva decimal.
t = 30yrs * 12mo/yr = 360 Months.
P1 = (156000*0.005*360)/(1-1.005^-360) =
$336,707.57
I = P-Po =
P2 = (195000*0.005*360)/(1-1.005^-360) =
$420,884.47
I = P2-Po
Answered by
Henry
Correction:
P = (Po*r*t)/(1-(1+r)^-t).
P = (Po*r*t)/(1-(1+r)^-t).