What will be the total cost of Maria's ARM if the term of the loan were 25 or 20 years instead of 30? Use the variable rate loan calculator to find the answers. Write them in the spaces below.

Mortgage Term | Total Cost
25 years: |
20 years: |​

Respuesta :

Answer:

The total cost of the loan goes down as the term decreases. Although the amount of the loan itself remains the same, the total amount of interest Maria would have to pay in interest decreased when the term of the loan decreased. However, the monthly payments increased when the term decreased. So, a shorter term saves interest but requires greater monthly payments.

Step-by-step explanation:

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