Question

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 740 or higher. How much more interest would you pay on a $190,000 home if you put 20% down and financed the remaining with a 30-year mortgage at 6% interest compared to a 30-year mortgage at 3.5% interest? (Do not round intermediate calculations. Round your answer to the nearest cent.)

Answer 1

=(190000*(1-20%))*((6%/12)/(1-1/(1+6%/12)^(12*30))-(3%/12)/(1-1/(1+3%/12)^(12*30)))*12*30=97372.32010683