Kathy wants to buy a condominium selling for $97,000. The taxes on the property are $1500 per year, and homeowners' insurance is $336 per year. Kathy's gross monthly income is $5000. She has 15 monthly payments of $145 remaining on her van. The bank is requiring 20% down and is charging a 9.5% interest rate with no points. Her bank will approve a loan that has a total monthly mortgage payment of principal, interest, property taxes, and homeowners' insurance that is less than or equal to 28% of her adjusted monthly income. Complete parts a) through h) below.

a) Determine the required down payment.

The required down payment is

b) Determine 28% of her adjusted monthly income.

28% of her adjusted monthly income is

c) Determine the monthly payments of principal and interest for a 25-year loan.

The monthly payment of principal and interest for a 25-year loan is

d) Determine her monthly payment, including homeowners' insurance and taxes.

Her total monthly payment, including homeowners' insurance and taxes is

e) Does Kathy qualify for the loan?

f) Determine how much of the first payment on the loan is applied to the principal.

The amount of the first payment that is applied to the principal is

g) Determine the total amount she pays for the condominium with a 25-year conventional loan. (Do not include taxes or homeowners' insurance.)

The total amount paid is

h) Determine the total interest paid for the 25-year loan.

The total interest paid is