Assume you purchase a home for $185,000 with a 30-year mortgage set at a fixed rate of 8.25% and 0 points. Based upon this information, answer the following questions.

1. If you paid down your interest rate to 7.75% (by paying 2 points) a. What would be your monthly mortgage payment? b. How much interest and principal will be paid on the first months payment? The second months payment? (a. Monthly Payment: $1,325.36 b. Month 1: Interest: $1,194.79; Principal: $130.57 Month 2: Interest: $1,193.95; Principal: $131.41)

2. What is the total amount of interest you will pay over the life of the loan under this 30-year mortgage at a 7.75% interest rate? (Total Interest Paid: $292,129.60)

The right answers are next to the question, can you show me the calculation process please?