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The average of a 30 years contract would cost about 3.57 percent of the available capital. The average of a 15 years contract would cost about 2.72 percent.

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How much does an average US home mortgage cost?

The average United States home mortgage will depend on the location, age and size of the house. In February 2013, the average house in the United States cost $152,000. As for the actual mortgage rate, that will depend on the length and type of mortgage one gets. On average, a 30 year fixed rate would be about 4.2%.


What are the fixed costs that one should allow for when budgeting?

A fixed expense is a cost or overhead that remains the same each week, fortnight, month, quarter or year. An example of a fixed cost would be rent or a fixed mortgage repayment.


What happens to the value of average fixed cost as the level of output increases?

The average fixed cost is equal to fixed cost divided by level of output, if the output increases; the average fixed cost is less.


What is an example of a fixed cost?

Your rent might be $500 per month. It is a fixed cost. $500 per month. You can rely that every month you have to pay that fixed cost. If you have a house you bought but still pay the mortgage. The mortgage repayment may be $550 per month.


What is the method to calculate average fixed cost in economics?

To calculate average fixed cost in economics, you divide total fixed costs by the quantity of output produced. This gives you the average fixed cost per unit of output.


Is mortgage payment a variable cost?

Mortgage payment can either be fixed or variable cost. A fixed cost means the interest rate charged on the loan will remain the same for the loan's entire term. A variable cost means the interest rate changes or decreases as time pass.


How do you calculate the average fixed cost for a business?

To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the fixed cost per unit of output.


Is there a cost savings to having fixed mortgage rates?

If the rates are down when you lock into a fixed mortgage rate, than yes, absolutely there are savings. If the rates are high, it's typically better to go with a variable mortgage rate.


What causes average fixed cost to decline?

The average fixed cost curve is negatively sloped. Average fixed cost is relatively high at small quantities of output, then declines as production increases. The more production increases, the more average fixed cost declines. The reason behind this perpetual decline is that a given FIXED cost is spread over an increasingly larger quantity of output.


How can one calculate the average fixed cost for a business?

To calculate the average fixed cost for a business, you divide the total fixed costs by the quantity of output produced. This gives you the cost per unit of fixed expenses incurred by the business.


How to find the average fixed cost in a business?

To find the average fixed cost in a business, you divide the total fixed costs by the quantity of output produced. This calculation helps determine the average cost of producing each unit of output in the business.


DO Average cost always falls as output increases because fixed costs will be spread more thinly?

Not necessarily. Total Cost = Fixed Cost + Variable Cost; Variable Cost=f(Quantity) and if f`(Quantity)>0 it implies that as quantity produced rises variable cost would rise. Average Total Cost=Average Fixed Cost + Average Variable Cost. If initially the Total Cost function is more of an odd function (mostly it is) then the Average Cost will look more like a parabola i.e. it will tend to fall becuase the Fixed Cost gets thin but later that is overtaken by the increase in Variable Cost. But there are cases when Average Total Cost does fall continuously as quantity increases and these involve huge Fixed Costs like say Electric Supply Infrastructure. This is called natural monopoly.