You need a loan of $100,000 to buy a condo. Calculate your monthly payments and total closing costs for each choice.
-Choice 1: 30-year fixed rate at $4 \%$ with closing costs of $\$ 1323$ and no points Choice 2: 20-year fixed rate at $3.5 \%$ with closing costs of $\$ 1323$ and 2 points

Question

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The monthly payment for Choice 1 is calculated using the formula for a 30-year fixed mortgage at 4%, resulting in $477.42. For Choice 2, the monthly payment is calculated for a 20-year fixed mortgage at 3.5%, resulting in $579.96. The closing costs for Choice 2 include the base closing costs of $1323 plus 2 points (2% of $100,000), totaling $3323.

You Need a Loan of $100,000 to Buy a Condo 4%4 \%4%

You Need a Loan of $100,000 to Buy a Condo $4 \%$