1. What are the monthly payments for a 30 year traditional mortgage?
What are the payments for a 20 year traditional mortgage? 2. Prepare an amortization table for the first six months of the traditional 30 year-mortgage. How much of the first payment goes toward principal? 3. How long would it take for S&S Air to pay off the smart loan assuming 30-year traditional mortgage payments? Why is this shorter than the time needed to pay off the traditional mortgage? How much interest would the company save? 4. Assume S&S takes out a bullet loan under the terms described.
What are the payments on the loans? 5.What are the payments on the interest only loans? 6.Which mortgage is the best for the company? Are there any potential risks in this action?