iple wants to purchase a hom couple will put down a 20% down pa average rate for a 30-year fixed mort 20 years, the couple would like to ref cheir monthly payment?
iple wants to purchase a hom couple will put down a 20% down pa average rate for a 30-year fixed mort 20 years, the couple would like to ref cheir monthly payment?
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Question
Transcribed Image Text:4. A couple wants to purchase a home in Texas. An average home in Texas in 2020 costs $213,036. The
couple will put down a 20% down payment on the home and will finance the rest of their loan. If the
average rate for a 30-year fixed mortgage is 3.85%, what is the monthly payment for the couple? Suppose in
20 years, the couple would like to refinance their home. If the interest rate were 2.83%, what would be
their monthly payment?
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