Suppose calvin cordozar broadus, jr. (aka snoop doggy dogg) is considering moving his family to manhattan. his real estate agent has managed to locate a penthouse apartment that overlooks central park for $2.4 million. he will have $2.1 million from the sale of his current home as a down payment. snoop would like to finance the remainder of the cost and his banker has presented two options: a 30-year fixed-rate mortgage at 8% or a 20-year fixed-rate mortgage at 7.5%.
how much will snoop have to finance?
determine the monthly mortgage payment for the 30-year loan.
determine the monthly mortgage payment of the 20-year loan.
how much is saved in interest by choosing the more economical mortgage?