MAT 143: Mortgage Project Name: **All dollar amounts should be rounded to the nearest cent...two decimal places** **Complete your work and enter the answers in the link in Moodle. 1. Suppose you are a manager at a local store where your yearly salary is $68711. Determine your monthly salary. 2. You are ready to purchase your first home. You find a house for sale for $165,000 in a nice neighborhood. If you invested $1,500 twelve years ago at 6.5% interest compounded monthly, how much money do you have available to help with the down payment? 3. If you pay the full asking price for the house you found above and make a 5% down payment: a. How much is the down payment? b. How much will you be financing? 4. After researching different local banks, you find a 20-year fixed interest rate at 4% for your home. Determine the monthly payment of principal and interest on the loan. (see chart in book) 5. If the yearly property taxes are 1% and homeowner's insurance is 0.5% of the purchase price, calculate the total monthly payment with escrow. 6. If you have more than 10 payments remaining on a student loan of $175, and also a car of $200, use your salary information to determine your adjusted monthly income. a. What is your adjustable monthly income? b. What monthly payment does the bank think you can afford? c. Would you qualify for this mortgage you have found? 7. Determine the total amount you will have paid for the house at the end of the 20-year term, including principal, interest and down payment. How much of the total is interest? a. Total amount paid for the house: b. Total amount paid in interest: 8. How much of the first payment goes towards interest and how much goes toward reducing the principal? a. Amount that goes towards interest: b. Amount that goes towards reducing the principal: 9. How much of the second payment goes towards interest and how much goes toward reducing the principal? a. Amount that goes towards interest: b. Amount that goes towards reducing the principal