1. 1. You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your monthly payment? Round your answer to 2 decimal places.

2. You borrow $100,000 on a mortgage loan. The loan requires monthly payments for the next 30 years. Your annual loan rate is 4.25%. The loan is fully amortizing. What is your Month 1 interest payment? Round your answer to 2 decimal places.

3. Which one of the following best describes a fixed-rate, fully amortizing mortgage loan? Select all that apply.

		The interest you pay declines over time.
		Your loan principal balance increases over time.
		Your monthly loan payments change over time.
		You owe nothing at the end of the life of the loan.

4. A bank offers you a loan of $100,000 with 3 points. How much will you pay in points?