You need a loan of $160,000 to buy a home. Calculate your monthly payments and total...

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Advance Math

You need a loan of $160,000 to buy a home. Calculate yourmonthly payments and total closing costs for each choice below.
Choice 1: 30 year fixed rate at 5% with closing costs if $2300and no points.
Choice 2: 30 year fixed rate at 4.5% with closing costs of $2300and 5 points.
What is the monthly payment for choice one?
What is the monthly payment for choice two?
what is the total closing cost for choice one?
what is the total closing cost for choice two?
why might choice one be better?
why might choice two be better?

Answer & Explanation Solved by verified expert

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Choice 1 30 year fixed rate at 5 with closing costs if 2300 and no points Choice 2 30 year fixed rate at 45 with closing costs of 2300 and 5 points What is the monthly payment for choice one Loan amount 160000 Period t 30y Rate of interest r 5 5100 005 And compounding frequency is monthly so t 30 x 12 360 And See Answer

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