A couple, Meghan and Harry, are going to buy a house priced at $398,000. They are getting a 30-year mortgage that has an interest rate of 3.99%. In order to get this loan, they will need a 15% down payment. The bank is charging them 1.5 points.

Part a) (3 pts) How much will the down payment be?

• Write out...
  • 1) your work (round your answer to the nearest cent), and
  • 2) write the answer in a complete sentence.

Part b) (3 pts) How much money will Meghan and Harry need to borrow?

• Write out...

• • 1) your work (round your answer to the nearest cent), and
  • 2) write the answer in a complete sentence.