Question
Asked Nov 2, 2019
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What mortgage would result in a higher payment? Mortgage A  $985 a month for 30 years or Mortgage B  $780 a month for 5 years and $1,056 a month for 25 years? 

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Expert Answer

Step 1
Total paym ents Monthly mortgage paym ents x Peri od
= S985x (30x12)
= $985x360
$129,600
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Total paym ents Monthly mortgage paym ents x Peri od = S985x (30x12) = $985x360 $129,600

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Step 2
Total payments = Monthly mortgage payments x Period
(S780x (5x12))+(S1,056x (25 x12))
$46,800+$316, 800
-$363, 600
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Total payments = Monthly mortgage payments x Period (S780x (5x12))+(S1,056x (25 x12)) $46,800+$316, 800 -$363, 600

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