# Mortgage Payment Project

### Allison & Olivia

**Website for house: http://tinyurl.com/housemortgageproject**

## 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

APR = 7.2% interest rate

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

APR = 6.9% interest rate

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

APR = 8.1% interest rate

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