A Loan Officer States, "Thousands of Dollars Can Be Saved

question 87

Multiple Choice

A loan officer states, "Thousands of dollars can be saved by switching to a 15-year mortgage from a 30-year mortgage." Calculate the difference in payments on a 30-year mortgage at 9% interest versus a 15-year mortgage with 8.5% interest.Both mortgages are for $100,000 and have monthly payments.What is the difference in total dollars that will be paid to the lender under each loan? (Round the monthly payment amounts to 2 decimal places.Both interest rates are compounded monthly.)

• A)$89,211
• B)$98,406
• C)$112,410
• D)$124,300

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Definitions:

Family Assessment

A systematic process of gathering and analyzing information about a family's structure, functions, and relationships to understand their needs, strengths, and challenges.

Scapegoating

The practice of unfairly blaming one person or group for problems or negative outcomes, often to deflect responsibility or criticisms.

Double Bind Communication

A situation in communication where an individual receives two or more conflicting messages, with one negating the other, making it difficult to appropriately respond or resolve.

Substance Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.