1)

Mortgage lenders base the mortgage interest rate they offer you on your credit rating. This makes it financially critical to maintain a credit score of 740 or higher. How much more interest would you pay on a $189,000 home if you put 25% down and financed the remaining with a 30-year mortgage at 5% interest compared to a 30-year mortgage at 3.5% interest? (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)

Excess interest =

2)

Daniel and Jan agreed to pay $551,000 for a four-bedroom colonial home in Waltham, Massachusetts, with a $60,000 down payment. They have a 30-year mortgage at a fixed rate of 6.00%.

a. How much is their monthly payment? (Do not round intermediate calculations. Round your answer to the nearest cent.)

b. After the first payment, what would be the balance of the principal? (Do not round intermediate calculations. Round your answers to the nearest cent.)

Payment number	Portion to		Balance of loan outstanding
	Interest	Principal
1