Increasing the down payment on a mortgage reduces both the s

Increasing the down payment on a mortgage reduces both the size of the monthly payments and the total interest paid.

1) Calculate the reduction in the monthly payment by increasing the down payment by the amount specified.
2) Calculate the amount saved on interest over the life of the loan.

Assume the mortgage is for 20 years find the monthly payment


Price on house $178,000 Interest rate 8% Down Payment $37,000 Increase in Down Payment $8000

$77.20,    $18,528.00

$66.88,     $16,051.20

$66.88,    $14,092.80

$57.28,    $13,747.20

Solution

$66.88,     $16,051.20