FedPrimeRate

FedPrimeRate.com reported the median price of a home sold in the United States in November 2017 was $199,600. Pat Radigan wants to purchase a new home for $313,500. Pat puts 20% down and will finance the remainder of the purchase. Compare the following two mortgage options he has: 12 years at 5.0% or 17 years at 5.5%. (Use Table 15.1.) (Round your intermediate calculations and final answers to the nearest cent.)

a. Calculate Pat's monthly payment for both the 12 and 17 year mortgage?

b. Calculate Pat's total cost of interest for both the 12 and 17 year mortgage?

c. What is the difference in interest paid between 12 and 17 year mortgage?