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The Johnsons are buying a house that costs $210,000 and can afford a 20% down payment. If the Johnsons want the lowest
monthly payment, which loan option would you recommend?
a 30 year FHA, 3.5% down at a fixed rate of 6.25%
b. 30 year fixed, 20% down at a fixed rate of 6%
C.30 year fixed, 10% down at a fixed rate of 6%
d. 15 year fixed, 20% down at a fixed rate 5.5%

Respuesta :

Answer:

b

Step-by-step explanation:

francocanacari

The most beneficial option is option D.

Given that the Johnsons are buying a house that costs $ 210,000 and can afford a 20% down payment, if the Johnsons want the lowest monthly payment, the following calculations must be performed to determine which loan option would you recommend:

  • A) 30 year FHA, 3.5% down at a fixed rate of 6.25%  
  • ((210,000 - (210,000 x 3.5 / 100)) x 1.0625 ^ 30) / (30 x 12) = X
  • (202,650 x 6,164) / 360 = X
  • 3,469.86 = X
  • 3,469.86 x 360 + 6,164 = 1,255,313.60

  • B) 30 year fixed, 20% down at a fixed rate of 6%  
  • ((210,000 - (210,000 x 0.2) x 1.06 ^ 30) / 360 = X
  • 168,000 x 5.74 / 360 = X
  • 2,680.29 = X
  • 2,680.29 x 360 + 42,000 = 1,006,904.40

  • C) 30 year fixed, 10% down at a fixed rate of 6%  
  • ((210,000 - 21,000) x 1.06 ^ 30) / 360 = X
  • 189,000 x 5.74 / 360 = X
  • 3,015.33 = X
  • 3,015.33 x 360 + 21,000 = 1,087,619.83

  • D) 15 year fixed, 20% down at a fixed rate 5.5%  
  • ((210,000 - 42,000) x 1,055 ^ 15) / 180 = X
  • 168,000 x 2.23 / 180 = X
  • 375,056.05 / 180 = X
  • 2,083.64 = X
  • 2,083.64 x 180 + 42,000 = 417,056.05

Therefore, the most beneficial option is option D.

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