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M129 A B C D E F G H Chapter 18 - Packet 120 121 122 3. Comparison of a 30-year Amortization vs. a 15-year Amortization (Manual) - 3 parts 124 125 Part 1: A local bank offers a 7.5% 30 year fixed rate mortgage. Assuming a 15% down payment, compute the following for the buyer of a $215,000 house. 126 a. Amount of loan (principal amount) Show work here: 134 135 b. Monthly payment amount (P&I) Sheet1 Ready - Type here to search o e O A B C D E F G H I b. Monthly payment amount (P&I) N= i/y= PV= PMT= FV= c. Number of PMT's to be made (full term of loan)? Show work here: et1 e here to search o e O D E F G H d. Total dollar amount of the payments to be made over the full term of the loan? Show work here: e. Total amount of principal to be paid back? 1. Total amount of interest to be paid over the full term of the loan? Show work here: Page 4 of 1 et1 e here to search 10 .000 ard Font Formatting Alignment Table Styles Style Number A B C D E F G H Part 2: Now, shorten the amortization term of the loan to 15 years. Compute: a. New monthly payment amount: N= i/y= PV= PMT= FV= b. Number of PMT's to be made (full term of the loan)? Show work here: Sheet1 Type here to search o e OO Font Omany Styles Form Alignment Number Table Styles Cell A B C D E F G H I c. Describe the relationship between the amortization term and the monthly PMT amount. d. Total dollar amount of the payments to be made over the full term of the loan? Show work here: e. Total amount of principal to be paid back: f. Total amount of interest to be paid over the full term of the loan? Sheet1 ype here to search A B C D E F G H LG LHK Chapter 18 - Packet Part 3: Compute the savings in total interest enjoyed by selecting a 15-year amortization rather than a 30-year amortization. Show work here: NOTE: This is not to say that a homeowner will keep their mortgage for the duration of the term, few do. The purpose is to illustrate the benefits of a shorter amortization; regardless of the actual loan term. 4. Reading and using a Loan Repayment Schedule heet1 + | 0 Hi ype here to search e m 2 = 0 & T

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