6. You are considering the purchase of a $250,000 house using a regular fixed rate mortgage...

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6. You are considering the purchase of a $250,000 house using aregular fixed rate mortgage loan with a 20% down payment; what isthe monthly payment (not including taxes and insurance) using a30-year (5.0%), 20-year (4.50%), and a 15-year (4.00%)? How muchtotal interest would you pay using the three different loans overthe course of the loan? What are the reasons you would considerusing a 5/1 adjustable rate mortgage? Would it be beneficial intoday’s current interest rate environment to consider using anARM?

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6. You are considering the purchase of a $250,000 house using aregular fixed rate mortgage loan with a 20% down payment; what isthe monthly payment (not including taxes and insurance) using a30-year (5.0%), 20-year (4.50%), and a 15-year (4.00%)? How muchtotal interest would you pay using the three different loans overthe course of the loan? What are the reasons you would considerusing a 5/1 adjustable rate mortgage? Would it be beneficial intoday’s current interest rate environment to consider using anARM?