Rob and laura wish to buy a new home. The price is $187,500 and they plan to put down 20%. CIBC will lend them at a fixed rate for 25 years with monthly payments. How much will Bob and Laura's monthly payment be? Assuming they pay off this mortgage over the 25 years as planned, what will the total cost(principal+ interest + down payment) of the house be? What will the outstanding balance of the loan be after 10 years assuming rob and Laura make all their payments on time?
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What rate of interest will they be paying?
10% fixed rate for 25 years.
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