Carl and Sue are planning to buy a new home. They will both retire in 16 years and do not want to have a house payment at that time. Which loan offer should they choose?
Accepted Solution
A:
Offer 1 Offer 2 Rate:7% Rate:6% Time(years): 30 Time (years): 25 Loan Amount: $200,000 Loan Amount: $200,000 Monthly Payment: $1,330.60 Monthly Payment: $1,288.60 Total Financed:$479,017.80 Total Financed: $386,580.84
Offer 3 Rate:5% Time (years): 15 Loan Amount: $200,000 Monthly Payment: $1581.59 Total Financed: $284,685.71