Chapter 7 - Lesson 1
Mortgages

The Mortgage-X web site offers a number of financial calculators to help you determine various aspects of mortgage costs. Visit the site to answer the following questions.

Suggested keywords: mortgage calculators, Mortgage-X
Web site: http://www.mortgage-x.com/calculators/

Your Name:	Today's Date:
Question 1: How much would your monthly mortgage payment be if you took out a 30-year mortgage on $150,000 at 7% interest? How much interest would you pay over the life of the loan?
Question 2: Use the same data as in question 1, except assume that you are able to make extra monthly payments of $50 over the life of the mortgage. How much would you save on interest payments? Would it still take 30 years to pay off the mortgage?
Question 3: Use the same data as in question 1, except assume only a 15-year mortgage rather than a 30-year mortgage. What would the monthly payment be? How much interest would you pay over the life of the loan?