Assume you borrow $200,000 from a bank today to buy a house at 4% interest for 30 years with monthly payments.

1) How much will the monthly payment be?

2) How much interest will you pay over the course of the loan?

3) How much equity do you have in the house after six years?

4) What will the loan balance be at the end of year 20?

5) How much interest was paid during year 5?

6) If you could borrow for only 15 years (with same interest rate on the same loan amount), how would this change your monthly payment? And how much interest is saved compared to the original 30-year-mortgage loan over the course of the loan?