Part 1. You have decided to buy a house for 250,000$. you plan to put a down payment of $50,000. Thus, borrowing 200,000 at time 0 on a 30 year mortgage and agreing to make monthly payments at the end of each month. Your realtor tells you that the annual interest rate is 10 percent on a 30 year term loan. What are the monthy payments for this loan?

Part 2. The next day your realtor tells you that because of her connections with another bank, she can get you the 200,000 at time 0 on a 30 year mortgage at an interest rate of 9%. What are the monthly payments for this loan at the new rate of 9%.

Part 3: What is this savings each monthly by moving from 10% to 9% mortgage rate? what is the PV today of the monthly savings over the next 30 years assuming an annual discount rate APR of 8%