A borrower bought a house for $200,000; he can obtain an 80% loan with a 30-year fully amortizing, 7% interest rate and monthly payment. Assuming that the marginal tax rate for the borrower is 28%.

1. What is the first month mortgage interest payment?

2. What is the first month mortgage interest deduction?

3. What is the first 5 months total taxable interest deduction:

4. What is the effective first 5 months mortgage payment (after tax benefit):

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