1. Assume you want to buy a house whose price is $300,000. You make 20% down payment and take a 20 year 4% mortgage for the rest. Prepare the mortgage amortization schedule. Show the monthly payment, interest and principal part and running monthly balance of the mortgage. What is the balance of the mortgage immediately after the 100^th payment?

2. Assume you want to buy a house priced at $250,000. You make 20% down payment and take a 30 year mortgage for the balance. The mortgage bank quotes you interest rate of 3.6% without a point and interest rate of 3.5% for a point fee of $2,500. Which rate will you take? Show calculations.

3. Assume you bought a house 10 years ago when interest rate was 4%. Now, you have a mortgage balance of $160,000 with 20 years remaining. A mortgage broker approaches you and offers you to refinance at 3.0% rate for 20 year mortgage. The closing costs will be $4,500. Will you refinance? Show calculations.