Loans Day 2 Practice

Last updated over 1 year ago
12 questions
1

Cosmo and Wanda decide to buy a house.
Cosmo due to a fair credit score is offered an interest rate of 4.11%.
They plan to take out a $400,000, 30-year loan to buy a house in Milton.

How much money will Cosmos monthly payment be?

1

How much money will Cosmo ultimetly pay back on his loan?

1

Wanda due to an excellent credit score is offered an interest rate of 2.52%.
They plan to take out a $400,000, 30-year loan to buy a house in Milton.

How much money will Wandas monthly payment be?

1

How much money will Wandas end up paying back on her loan?

1

How much money will they save by having Wanda take out a loan rather than Cosmo?

Part 2: The following prompts will help you compare the money paid back on a loan depending on the length of a loan rather than one's credit score
1

Cosmo and Wanda decide to buy a house.
Cosmo due to a fair credit score is offered an interest rate of 4.11%.
They plan to take out a $400,000, 15-year loan to buy a house in Milton.
How much money will Cosmos monthly payment be?

1

How much money will Cosmo ultimetly pay back on his loan?

1

How much will he save by taking a 15 year loan rather than a 30 year loan? (HINT use your answer from #2)

1

Wanda due to an excellent credit score is offered an interest rate of 2.52%.
They plan to take out a $400,000, 15-year loan to buy a house in Milton.
How much money will Wandas monthly payment be?

1

How much money will Wanda ultimetly pay back on this 15 year loan?

1

How much will she save by taking a 15 year loan rather than a 30 year loan? (HINT use your answer from #4)

1

Why might someone want to take out a 30 year loan rather than a 15 year loan? Use vocabulary such as monthly payment in your answer