To calculate the monthly payment for the 20-year loan, we can use the formula for the monthly payment on an amortized loan:

$M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1}$

Where:

• $M$ = monthly payment
• $P$ = loan principal (the amount borrowed) = $160,000
• $r$ = monthly interest rate (annual rate divided by 12)
• $n$ = total number of payments (loan term in years multiplied by 12)

Given:

• Annual interest rate = 9.6% = 0.096
• Loan term = 20 years
• Monthly interest rate $r = \frac{9.6\%}{12} = \frac{0.096}{12} = 0.008$
• Total number of payments $n = 20 \times 12 = 240$

Let's compute the monthly payment using these values.The monthly payment for the 20-year loan would be approximately $1,501.87.

Do you have any questions or would you like further details on this?

Here are 5 related questions to consider:

1. How much interest will be paid over the life of the 20-year loan?
2. How do monthly payments differ if the loan term is increased to 30 years?
3. How does a change in interest rate affect monthly payments?
4. What is the total cost of the house with interest included for the 20-year loan?
5. What is the benefit of paying off a loan in 20 years versus 30 years?

Tip: Making extra payments on a loan can significantly reduce the total interest paid over the life of the loan.