View the step-by-step solution to:

Question

Freddy and Frieda Finance are looking to buy a house. They can comfortably afford a monthly payment of $2500 and

plan to pay $130,000 as a down payment. Help them evaluate some mortgage options. 


  1. The Finances find a house they love costing $579,000 and with their $130,000 down payment they will have to take out a mortgage loan for $439,000.

a) Nautical Bank offers a 30-year fixed rate mortgage with a nominal annual rate of 3.375%. What would be the Finances' monthly payment under this loan?

b) Bank of United States offers a 15-year fixed rate mortgage with a nominal annual rate of 2.75%. What would be the Finance's monthly payment under this loan? 

Top Answer

a) Nautical bank - Finance's monthly payment- $1,940.80 b) Bank of Unites States -... View the full answer

Screenshot (422).png

+ Untitled spreadsheet - Google Sh X
+
X
docs.google.com/spreadsheets/d/1F9tkOPqHsw2Ds_FV2hSz17eRGPPYquOEz|2BDpbClhA/edit#gid=62711602
S
:: Apps W MarketWatch: Stock... . Risk Management -... Q...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question