Advantages and Disadvantages of each loan

c. What are the advantages and disadvantages of each loan? d. Suppose that you choose the 30-year FRM in the table above. Use the mortgage calculator to figure out the amount of interest you would s

c. What are the advantages and disadvantages of each loan?

d. Suppose that you choose the 30-year FRM in the table above. Use the mortgage calculator to figure out the amount of interest you would save and the number of years cut off of the loan by paying an additional $150 per payment.

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e. Repeat part (d) except instead of an addition $150 per payment, suppose you make an addition $______ per payment where the blank represents the difference in the 30-year payment and the 15-year payment. How much interest would you save and how many years would that cut off of the loan?

f. From your work above, describe a strategy you can use to repay a home loan to save thousands of dollars of interest and also keep the option to have reasonably lower monthly payments.

g. In this problem we ignored other additions to your monthly payment. What else would most likely be added to your monthly mortgage payment?

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