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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

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