Go to a realtor’s website and choose a house. Use the information available of the realtor’s website (or an online mortgage calculator) to find the total amount you would pay for a 30-year mortgage on that house at 4% interest (assume you make a 20% down payment). Now do the same calculation using 7% as the interest rate. What is the difference in total mortgage payments between the 4% loan and the 7% loan?
