Traditional mortgage

  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?

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