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Mortgage Payments

Mortgage Payments. Janelle Wankum. $599,000. 000 Tinsman Dr PERKASIE, PA 18944. 4 Bedrooms 3.5 Bath 4,141 Sq Ft On 1 Acre. Present Value of an Annuity:. Structure #1 t= 25 years APR= 7.2%. Structure #2 t= 30 years APR= 6.9%. Structure #3 t= 15 years APR= 8.1%. ANALYSIS QUESTIONS.

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Mortgage Payments

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  1. Mortgage Payments Janelle Wankum

  2. $599,000 000 Tinsman DrPERKASIE, PA 18944 • 4 Bedrooms • 3.5 Bath • 4,141 Sq Ft • On 1 Acre

  3. Present Value of an Annuity:

  4. Structure #1t= 25 yearsAPR= 7.2%

  5. Structure #2t= 30 yearsAPR= 6.9%

  6. Structure #3t= 15 yearsAPR= 8.1%

  7. ANALYSIS QUESTIONS In terms of monthly payment, the best structure would be Structure 2 because it has the lowest annuity payment. The monthly payment is $3,156.01 compared to the other structures which require a monthly payment of $3,448.27 for Structure 1 and $4,607.19 for Structure 3. After comparing the 3 different structures, I came to the conclusion that Structure 3 is the least expensive in terms of the amount paid in interest because it had the highest number for total number or payments which means it is growing faster exponentially. The least expensive in terms of the amount paid over the total life of the loan is Structure 3. As oppose to $555,281 (Structure 1) and $656,963.60 (Structure 2), paying $350,094.20 is the most cost effective structure. Personally, the best structure that would suit my budget situation and lifestyle would be Structure 2 because although the most money over the lifetime of the loan I would plan on living in the same house for a long time. Therefore there would be no rush to pay it off. Also I like having extra money to spend on entertainment and would not want to have to put the majority of my check into a house payment.

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