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