Mr. Jones has $4,000 as monthly income. He has $50,000 invested in a portfolio of stocks with average annual return of 6%. Mr. Jones wants to buy a house and he has narrowed down his choices to two houses. House A is $400,000 and House B is $209,900.

1. What will be his monthly mortgage payment if he buys House A by taking a 30-year fix-rate mortgage? (Assume he borrows the whole amount and mortgage interest rate is 6%)

2. Because he did not put any money down, he has to pay $80 as monthly private mortgage insurance. The property tax for House A is $6000 annually. What will be Mr. Jones