6.3 Home Mortgages

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• Math Help

To find the interest in Example 2, note that the home mortgage is for \$250,000.

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• Checkpoint Solution
1. The monthly payment is

So, the total interest paid is

2. The monthly payment is

So, the total interest paid is

3. The monthly payment is

So, the total interest paid is

4. No. It can be concluded that as the annual percentage rate increases, total interest paid over the term of the loan does not increase at the same rate. In all examples so far, the total interest paid has increased by a greater factor than the APR did.

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