You are about to purchase a house for $625K, making a down p…
You are about to purchase a house for $625K, making a down payment of 20%, and financing the rest with a mortgage. You are evaluating two new options that the govt created to make housing “more affordable” (not a true story, yet). A 50-year mortgage at 6.00% APR A perpetual mortgage at 6.00% APR Calculate how much lower will your mortgage payments be for option B compared to A. In other words, how much will you “save” per month to be indebted for eternity. Assume other terms being same, with standard conditions (monthly end-of-month payments). Submit your answer in dollars, rounding your answer to the nearest penny ($0.01).