Find the monthly principal, interest, property taxes, and homeowners insurance payment $($PITI$).$ Show

your work.

Given your salary, is the monthly PITI less than the maximum house payment you can afford? Would you

qualify for this mortgage? Is it reasonable and sustainable? Explain.

The website for your bank says that the terms also require $2$ points $($interest$)$ to be paid at the time of closing.

What is the cost of the points? Show your work.

Find the total amount that you would pay for this house $($down payment, principal, and interest$).$ Show

your work.

How much of the total cost will be interest? Show your work.

How much of the first payment on the mortgage is applied to the principal? Show your work.

After working through these calculations on this potential house purchase, you have many other thoughts

swirling through your mind. You want to make a wise decision. List at least three other factors that you should

consider about this house and yourself before you think it would be a good decision to apply for the mortgage.

E$.$g$.$: I have steady income and the sum needed for the house down payment and closing costs is in my savings

waiting to be used. This is important because without this steady income and savings, I would not be able to

obtain a mortgage to cover the remaining cost for the house.

a$.$

b

c$.$