6. Ann is willing to spend $1,500 per month on her mortgage payment. If Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments at 4.38%, how big of a mortgage can she get?

7. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What will be Anns mortgage balance after 20 years of payments (ie after 240 months)?

8. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Anns 20^th payment goes to interest?

9. Ann obtains a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000 at 4.38%. What percent of Anns 20^th payment goes to principal?

10. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.Assuming Ann makes payments for 30 years, what is Anns annualized IRR from mortgage A?

11. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.Assuming Ann makes payments for 30 years, what is Anns annualized IRR from mortgage B?

12. Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000.Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.Assuming Ann makes payments for 30 years, which mortgage has the lowest cost of borrowing (ie lowest annualized IRR)? Type 1 for A, type 2 for B.