Steven has just purchased a home for $138,600. A mortgage company has approved his loan application for a 30- year fixed-rate loan at 5.25%.Steven has agreed to pay 20% of the purchase price as a down payment. If Steven made the same loan for 20 years, how much interest would he save?

frobirrimupyx

frobirrimupyx

Answered question

2022-09-09

Steven has just purchased a home for $138,600. A mortgage company has approved his loan application for a 30- year fixed-rate loan at 5.25%.Steven has agreed to pay 20% of the purchase price as a down payment. If Steven made the same loan for 20 years, how much interest would he save?

Answer & Explanation

Dwayne Small

Dwayne Small

Beginner2022-09-10Added 12 answers

He pay 20% of the Rize as down payment.
20% of 138 600= 27 720
Amount he to pays = 138 600 - 27 720
=110 880
We know I = P R T
in 30 years, I = 110880 × 5.25 100 × 30 = 174636
in 20 years I = 110880 × 5.25 100 × 30 = 116424
Saved Interest = 58 212

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