SOLUTION: You now need to secure a mortgage. Assume there are no closing costs or fees and you are taking out a conventional mortgage loan. The amount you owe is $135,000. You have two loans

Question 351643: You now need to secure a mortgage. Assume there are no closing costs or fees and you are taking out a conventional mortgage loan. The amount you owe is $135,000. You have two loans to choose from:
Loan A is a 30-year fixed loan at 7.5%
Loan B is a 15-year fixed loan at 6.5%
Assume you have exactly $1150 a month to spend on the mortgage, which loan would you choose? Explain your reasoning.
Answer by rfer(16322) (Show Source): You can put this solution on YOUR website!
R=(P(r/12))/(1-(1+r/12)^12t)
R=payment
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