Assume you want to buy a $$250,000$ house using a mortgage. You plan to finance

the house for $20$ years and you will be placing no money down as a down payment.

The mortgage company tells you that your interest rate will be $4\mathrm{.}25\%.$ You hold off

on making a decision and the bank calls you back to tell you that they have

reconsidered and will now offer you a $4\mathrm{.}00\%$ interest rate. What will happen to your

monthly principal and interest payment when the bank lowers your interest rate?

your payment will decrease

your payment will stay the same

you cannot tell based on the information provided

your payment will increase