# Mortgage Payment Project

## Details About the House

• The house costs \$228,00
• The downpayment is \$45,600
• That leaves us with \$182,400 left to pay

There's three options of payment for the house, which are modeled below.

## Structure #1

t = 25 years

APR = 7.2% interest rate

A) \$1312.53 is the monthly payment

B) the amount paid in total during the life of the loan is \$393,759

C) the amount of interest paid during the life of the loan is \$211358.81 (\$704.53 average per month)

## Structure #2

t = 30 years

APR = 6.9% interest rate

A) \$1201.29 is the monthly payment

B) the amount paid in total during the life of the loan is \$432,464.40

C) the amount of interest paid during the life of the loan is \$250060.38 (\$694.61 average per month)

## Structure #3

t = 15 years

APR = 8.1% interest rate

A) \$1753.66 is the monthly payment

B) the amount paid in total during the life of the loan is \$315,658.80

C) the amount of interest paid during the life of the loan is \$133257.28 (\$740.32 average per month)

## Analysis Questions

Compare the three mortgage structures. In terms of its monthly payment, which mortgage structure would be the least expensive?

In terms of monthly payment, structure #1 has the least expensive payment.

In terms of the amount paid in interest, which mortgage structure would be the least expensive?

Structure #3 has the least amount of overall interest paid.

In terms of the amount paid in total over the life of the loan, which mortgage structure would be the least expensive?

#1: \$605,117.81

#2: \$682,524.38

#3: \$448,916.08

Structure #3 is the cheapest loan.

Olivia Sipple