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Background In this unit we learn about mortgage. In fact which kind of mortgage Is better or a better word to quote it would be which fits the best for “u”. Mortgage doesn’t only differ in amount of money they offer but also the amount of time it is attach to the loan. In conclusion this project is all about comparing and deciding which loan best fits for you or the occasion you’re in.
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What Mortgage was offers? Cost of the house: $175,000 Down Payment: 10% Period: 15years, 30years Amount of Loan: $157,500 Interest Rate: 5%
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Comparison of each mortgage 15 30Interest Paid over life $66,695.10 $146,883.32Total amount paid $224,195.10 $303,883.32Monthly Payment $1,245.50 $845.49Extra $100 $7,733.43 $35,048.35Extra $500 $26,237.55 $87,921.09
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Interest Paid Over Life Interest Paid$160,000.00$140,000.00$120,000.00$100,000.00 $80,000.00 Interest Paid $60,000.00 $40,000.00 $20,000.00 $0.00 15 Years 30 Years
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Total Amount Paid Total Amount Paid$350,000.00$300,000.00$250,000.00$200,000.00 Total Amount Paid$150,000.00$100,000.00 $50,000.00 $0.00 15 Years 30 Years
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Monthly Payment Monthly Payment$1,400.00$1,200.00$1,000.00 $800.00 Monthly Payment $600.00 $400.00 $200.00 $0.00 15 Years 30 Years
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Extra $100 Interest Paid If Extra $100 Is paid$40,000.00$35,000.00$30,000.00$25,000.00 Interest Paid If Extra$20,000.00 $100 Is paid$15,000.00$10,000.00 $5,000.00 $0.00 15 Years 30 Years
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Interest paid if $500 is add$90,000.00$80,000.00$70,000.00$60,000.00$50,000.00 Interest paid if $500 is$40,000.00 add$30,000.00$20,000.00$10,000.00 $0.00 15 Years 30 Years
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Calculation 15 years Total Fixed Payment: $1245.5+ $1329.67 $5863.58 = 44% 30 years http://www.iconfinder.com/icondetails/27842/ 128/close_delete_exit_no_reject_icon Total Fixed Payment: $845.49+$1329.67 $5863.58 = 37% http://www.iconarchive.com/show/must-have- icons-by-visualpharm/Check-icon.html
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Which one is better? It’s better to take out a 30 years mortgage because it only cost you 14% of your total income which means you would have the rest to spend and save on other things. Also the total amount loan you can ask for is 36% of your total monthly income. Therefore, it gives you an extra 22% are for loans. Also 30 years mortgage qualify the requirement for fixed payment. Plus it gives you a lot more to spend and save.
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