Mortgage & Housing Problem: 1.What are the advantages and disadvantages of Buying vs. Renting A House? 2. Market price of the house: $450,000 Downpayment: $50,000 Loan: $400,000 Mortgage rate: 6% Conventional mortgage: 30 year monthly pmt

2.1 What is the monthly mortgage payment? *Remember to calculate the relevant periodic rate. 2.2 Which dimension of Time Value of Money is applied to solve Q (1)? 2.3 If you present the mortgage payment for all the months using a spreadsheet using the columns: Month, Monthly pmt, Interest pmt, Principal pmt portion, and ending balance, what should be the ending balance at the end the 30th year? 2.4 What is the total interest payments for 30 years? 2.5 What is the total monthly payments for 30 years? 2.6 If you look at carefully the month to month interest payment amounts and principal payments over the first 10 years and the last 10 years, what are you observing?