Bill Jones is getting ready to purchase a house for $250,000. He plans to make a down payment of $75,000 and borrow $175,000. The current interest rates are 4% and he plans to obtain a 15 year loan. Real estate taxes are $3,100 annually, and his house insurance will cost $950 annually.

1) What will his monthly principal and interest payment be?

2) What will his total monthly payment be when tax and insurance escrows are included?