1. If you just bought a house for $400,000 (including on closing costs) on Signal Mountain by getting a fixed 30-year mortgage at a 5% interest rate, what would be your monthly payment?

2. How much less money would you pay if you refinanced the loan in the previous problem after 15 years for a new 15-year loan at 3.5% interest rate? Be sure to include a $2,000 refinancing cost to the total remaining balance on the new loan