1. Consider a $450,000 home that you are going to purchase. You find a fixed-rate mortgage at 2.75% for 30 years, but has a cost of 2 points. The lender also requires a 20% down payment. Be sure to show all work and computations, you can check your work using the excel spreadsheet. (a) Calculate the 20% down payment and then subtract that amount from the cost of the home. This is your total mortgage amount. (b) Calculate the total cost for the 2 points. This is equivalent to 2% of the total mortgage amount. (e) Calculate the monthly payment of the loan amount. (d) Calculate the amount of interest that will be paid to the bank over the 30 year time frame. Add this value to the "point" cost, this is your total fee for borrowing the money to purchase the home (not including closing costs!)