A loan officer states that "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage".
Calculate the difference in payments on a 30 year mortgage at 9% interest versus a 15 year mortgage with 8.5% interest. Both mortgages are $100,000 and have a monthly payments. What is the difference in total dollars that will be paid to the lender under each loan?© BrainMass Inc. brainmass.com March 4, 2021, 7:59 pm ad1c9bdddf
Note: the abbreviations have the following meanings
PVIFA= Present Value Interest Factor for an Annuity
It can be read from tables or calculated using the following equation
PVIFA( n, r%)= =[1-1/(1+r%)^n]/r%
Step 1: Calculate monthly payments in both the options
1 30 year motgage at 9% interest
Frequency= M Monthly
No of ...
The expert examines a 15-year mortgage versus a 30-year mortgage in a loan payment.