1. A couple has just purchased a home for $391,900.00. They will pay 20% down in cash, and finance the remaining balance. The mortgage broker has gotten them a mortgage rate of 5.52% APR with monthly compounding. The mortgage has a term of 30 years.

How much interest is paid in the first year?

2. A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $967.00. They go to their local banker and she offers them a mortgage of 5.16% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the homes value.

What is the mortgage that the couple can apply for based on their budget and the offered terms?

3.

A young married couple has carefully looked at their budget. After review, they can afford a monthly mortgage payment of $967.00. They go to their local banker and she offers them a mortgage of 5.16% APR with monthly compounding with a term of 30 years. The couple has enough savings to pay 20% down, so the mortgage will be 80% of the homes value.

With this mortgage and a 20% down payment, what priced house can the couple afford?

4.A family takes out a mortgage for $254,300.00 from the local bank. The loan is for 30 years of monthly payments at a 4.32% APR (monthly compounding). What will the familys balance be on the mortgage after 5.00 years?