You've decided to buy a house that is valued at $1 million. You have $300,000 to use as a down payment on the house, and you take out a mortgage for the rest. Your bank has approved your mortgage for the balance amount of $700,000 and is offering you a 25 -year mortgage with 8% fixed nominal interest rate (called the APR, or Annual Percentage Rate) compounded semiannually. According to this proposal, what will be your monthly mortgage payment? $8,280$7,212$5,342$6,678 Your friends suggest that you take a 15-year mortgage, because a 25-year mortgage is too long and you will lose a lot of money on interest. If your bank approves a 15-year, $700,000 loan at a fixed nominal interest rate of 8% (APR), what will be the difference in the payments of the 15 -year mortgage and 25-year mortgage? It is likely that you won't like the prospect of paying more money each month, but if you do take out a 15-year mortgage, you will make far fewer payments and will pay a lot less in interest. How much more interest will you pay if you take out a 25 -year mortgage instead of a 15 -year mortgage? Which of the following statements is not true about mortgages? If the payment is less than the interest due, the ending balance of the loan will decrease. Every payment made toward an amortized loan consists of two parts-interest and repayment of principal. The ending balance of an amortized loan contract will be zero. Mortgages are examples of amortized loans