Financing a House Assignment

Duration	30 Years	30 Years	30 Years	30 Years
Price of House
Interest Rate	6%	9%	12%	15%
Payment per $1,000 (chart)
Total Monthly Payment
Total Cost of House

Duration	30 Years	30 Years	30 Years	30 Years
Price of House
Interest Rate	6%	9%	12%	15%
Payment per $1,000 (chart)
Total Monthly Payment
Total Cost of House

Duration	30 Years	30 Years	30 Years	30 Years
Price of House
Interest Rate	6%	9%	12%	15%
Payment per $1,000 (chart)
Total Monthly Payment
Total Cost of House

Below… (1) Attach the slip that you drew. (2) Attach the three houses that you found. (3) Write which house you would choose and why.

1. (a) A 15-year mortgage at 8 percent for a $100,000 house. (b) How much are you really paying for the house?

2. (a) A 30-year mortgage at 6.5 percent for a $200,000 house. (b) How much are you really paying for the house?

3. (a) A 25-year mortgage at 9 percent for a $150,000 house. (b) How much are you really paying for the house?

Now consider a loan for $125,000 at 7% interest. Compute the monthly payment and total cost for a 15, 20, 25, and 30-year loan.

Use the same information as above to fill out the next table. The only exception is the interest rate. It is now 8%. 

Duraton	Monthly Payment	Total Cost
15 years
20 years
25 years
30 years