30-year conventional conforming mortgage (source: Bankrate.com)

Down payment: 20%

FICO score needed: min. 700-719

WaterMark Homes LLC

NMLS #1838; State Lic #MC1838

Rate: 3.750% at 0.00 pts

45 day rate lock

You have just been offered a full-time position in Cambridge and want to live close to where you will be working. The above condo is currently listed for sale at $575,000 in Cambridge. It last sold for $435,000 in July 2005. This 1,128 square foot condominium has 2 bedrooms and 2 baths. The annual property taxes are estimated to be $5220. In research on home insurance, youve discovered that an average policy in Cambridge at this price level will cost about $1,080 per year.

Financing information for the potential property purchase is given above. In addition, your savings, targeted towards a home purchase, are $140,000.

You have a monthly car finance obligation (instalment) of $300 which you are paying off over the finance period of 4 years and $200 per month on your consolidated student loans.

Your broker has calculated closing costs, separate from the down payment on this property, to be $20,000. Assume that you will need to offer the listed price to stand a good chance of being accepted by the seller.

Q.How much of your first months payment would go to reducing the loan principal amount?