You need a $230,000 mortgage and have a great credit rating. The posted interest rate for the term you want is 7.95%. If you amortize this mortgage over 25 years, and negotiate the rate down to 7.1%, compare the monthly payments and the total interest with each interest rate. 

To compare the monthly payments and the total interest for a $230,000 mortgage with two different interest rates (7.95% and 7.1%) amortized over 25 years, we'll proceed step by step.

### 1. Monthly Payment Calculation

The formula for the monthly payment $M$ on a mortgage is:

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

Where:
- $P$ is the principal loan amount ($230,000).
- $r$ is the monthly interest rate (annual interest rate divided by 12).
- $n$ is the total number of payments (loan term in years multiplied by 12).

### For the 7.95% Interest Rate:

- Annual interest rate $= 7.95\%$
- Monthly interest rate $r = \frac{7.95\%}{12} = \frac{0.0795}{12}$
- Total number of payments $n = 25 \times 12 = 300$

Substituting into the formula:

\[
M_{7.95\%} = 230,000 \times \frac{\frac{0.0795}{12} \times (1 + \frac{0.0795}{12})^{300}}{(1 + \frac{0.0795}{12})^{300} - 1}
\]

### For the 7.1% Interest Rate:

- Annual interest rate $= 7.1\%$
- Monthly interest rate $r = \frac{7.1\%}{12} = \frac{0.071}{12}$
- Total number of payments $n = 300$

Substituting into the formula:

\[
M_{7.1\%} = 230,000 \times \frac{\frac{0.071}{12} \times (1 + \frac{0.071}{12})^{300}}{(1 + \frac{0.071}{12})^{300} - 1}
\]

I'll now calculate these values for you.

You need a $230,000 mortgage and have a great credit rating. The posted interest rate for the term you want is 7.95%. If you amortize this mortgage over 25 years, and negotiate the rate down to 7.1%, compare the monthly payments and the total interest with each interest rate.

Calculate and compare the monthly payments and total interest for a $230,000 mortgage over 25 years with interest rates of 7.95% and 7.1%. Learn how negotiating a lower interest rate can save you money on your loan. This guide uses the amortization formula to provide detailed financial insights.

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