Mortgage Payment Project

Allison & Olivia

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

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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

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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

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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.

If you were to determine which structure was best suited for YOU personally, which would you choose and why?

Olivia Sipple

Question #4 Response by Olivia Sipple