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Types of Mortgages

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Here is a type of mortgage problem that I always have trouble with. I think I can get the first part just fine but get stuck on part 2. If you can work it out slowly, it would be helpful.

Question:

You buy a house for $500,000 and put 20% down payment. You get a 30 year fixed rate mortgage at 6.2% .

A) What is your monthly payment?

B) How much would you save if you pay an extra $100 per month?

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Solution Summary

Mortgages are discussed.

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