Ava has successfully bid for a house at $600,000.$ Assume the lending value

assessed by the lender is of the same size as the purchase price. She has saved a down payment of $100,000.$

$($a$)$What type of mortgage would she have: conventional or high$-$ratio?

$($b$)$ Given your answer of $($a$),$ would she have to buy mortgage default insurance? If so$,$ how much? Use the following chart on mortgage insurance fee $($MIF$).$

Down Pay$\%$

$(1)15-19\mathrm{.}99\%$

$(2)10-14\mathrm{.}99\%$

$(3)5-9\mathrm{.}99\%$

LVR

$(1)80\mathrm{.}01-85\%$

$(2)85\mathrm{.}01-90\%$

$(3)90\mathrm{.}01-95\%$

MIF

$(1)2\mathrm{.}80\%$

$(2)3\mathrm{.}10\%$

$(3)4\mathrm{.}00\%$

$($c$)$ Assume Ava would add MIF onto the mortgage balance, what would be the total amount for the mortgage? Use this amount as the basis to calculate her monthly payment. Assume that interest rate is j$2=5\%$ and amortization $25$ years.