# The Cost of Mortgages

The Cost of Mortgages,

Part 1 Imagine you just bought a house for \$400,000 and made a 20% down payment. Find the monthly payment on the mortgage at 5% over 30 years.

Then multiply the monthly payment by the total number of payments to find the total amount of payments you make to the bank in paying off the loan. Now subtract the amount of the mortgage to find the total amount of interest you pay to the bank.

How does that amount of interest compare to the original sale price of the house? To receive credit you must show all of your calculations written out by hand.

(NOTE TO WRITER) (I will take the data from the paragraph and just convert your words into equations or hand-written calculations) The Cost of Mortgages,

Part 2

Go to a realtor’s website and choose a house. Use the information available of the realtor’s website (or an online mortgage calculator) to find the total amount you would pay for a 30-year mortgage on that house at 4% interest (assume you make a 20% down payment).

Now do the same calculation using 7% as the interest rate. What is the difference in total mortgage payments between the 4% loan and the 7% loan? Here’s the link to use: https://www.zillow.com/homedetails/26132-Harmony-View-St-Mechanicsville-MD-20659/97487316_zpid/ To complete this assignment and receive an A you need to do three things: Show your hand-written calculations, Include an image of the house into your posting, and Include the link to the web page that you used.

(NOTE TO WRITER) (I will take the data from the paragraph and just convert your words into equations or hand-written calculations) **If you have any questions, please let me know**

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