Question

Please answer completely and clear. Thanks!

It's time to buy a house! Pick a home value and assume that you have 20% of that value to use for a down payment. Investigate and find two mortgage options. Limit your choices to Fixed Rate loans. Post a screenshot and the source for your loan options. Based on the information you find, assuming you only are responsible for the monthly payment, how much would you pay in total for your home? Which mortgage option would you chose, and why? What are some pros and cons of each options? For example, I wish to purchase a $300,000 home and have a $60,000 down payment. I decided to explore Wells Fargo to see what mortgage options they offer. I found the following: $240,000 for a loan in Union County, NJ

Answer 1

Monthly amount paid for 30 Year loan	$1,163.16
Total payment	$418,737.37
Monthly amount paid for 15 Year loan	$1,715.72
Total payment	$308,829.26

The benefit of 30 year loan is that you get to defer payments over a longer term and the payments are small. The disadvantage is that there is huge total interest accumulated.

The benefit of 15 year loan is that the loan is repaid quickly. The amount of interest paid is lesser. But the disadvantage is that the payments are higher thus creating a burden on the borrower.

Working

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