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

question 105

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.)

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

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