Answered

Westonci.ca makes finding answers easy, with a community of experts ready to provide you with the information you seek. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

TREMAINE:
Wants a one-bedroom townhouse in a trendy new development downtown; the average cost is $145,000
Is preapproved for a 4.38% interest rate on a 30-year fixed mortgage
Has saved $15,000 for a down payment

If Tremaine waited until he had $30,000 saved for a down payment, how much money did he save by paying an extra $15,000 upfront? (total cost of home)

Sagot :

Tundexi

The amount of money he will save by paying an extra $15,000 upfront is $11,974.80.

Loan = Cost - Down payment

Loan = $145,000 - $15,000

Loan = $130,000

Given Information

P/Y= 12, C/Y=12

N= 30*12= 360

I/Y = 4.38

PV= -130,000

Monthly payment = PMT(C/Y, N, I/Y, -PV)

Monthly payment = $649.45

Total interest over the whole term = Monthly payments * Number of payments - Loan

Total interest over the whole term = $649.45*360 - $130000

Total interest over the whole term = $103,802

 

If waited to have down payment of $30,000: The Loan= $145,000 - $30,000 = $115,000

Given information

N= 30*12= 360

I/Y = 4.38

PV= -115,000

Monthly payment = PMT (N, I/Y, -PV)

Monthly payment = $574.51

Total interest over the course of the mortgage = $574.52*360 - $115,000

Total interest over the course of the mortgage = $91,827.20

Money saved by paying extra $15,000 upfront = $103,802 - $91,827.20

Money saved by paying extra $15,000 upfront = $11,974.80

Therefore, the amount of money he will save by paying an extra $15,000 upfront is $11,974.80.

Learn more about fixed mortgage:

brainly.com/question/2501237

ioniet59

Answer:

$11,953

Explanation:

View image ioniet59
We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.