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MAT 143 Comparing Loan Options
Chapter 4 LAB B
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In this lab, we will compare 3 different loan options. Suppose that you are buying a house for $205,000. The loan is at a fixed APR of 3.5% for 30 years.
Option 1: Making a down payment
1. If a 10% down payment is required, calculate this amount: ______________
2. What amount remains to be financed (this will be your loan amount.
3. Use the “Loan Payment Formula” to calculate your monthly payment: ______________
(Note that property tax and homeowner’s insurance will usually be added to the monthly payment, but we will look at just the payment on the principal for comparison purposes.)