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(CO B) Ms. Towne is buying a home for $250,000 and is putting down 20% cash...

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Finance

(CO B) Ms. Towne is buying a home for $250,000 and is puttingdown 20% cash on the purchase. She is financing the rest with a30-year, fixed rate mortgage with a rate of 4.625% but isconsidering an option that would allow her to make biweeklypayments. How much interest would the biweekly payment option allowher to save over the life of the loan and how long would it take topay off the loan?

Answer & Explanation Solved by verified expert
4.2 Ratings (584 Votes)
44330 2114 years Explanation Cost of home 250000 Borrowing 250000 1 20 200000 Monthly Interest rate 4625 12 Tenure 30 years 30 12 360 months Monthly Payment To get monthly payments we will use PMT    See Answer
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