Property List Price: $425,000

Estimated Annual Property Taxes: $6,800

Term of Mortgage Loan: 30 years

Annual Fixed-Interest Rate: 7.25%

 Calculations:

1. Find the Monthly Mortgage Payment (Principal and Interest Only). Assume a 15% down payment. The work for the calculations must be shown.

2. Find the Adjusted Monthly Mortgage Payment (PITI). Assume an insurance payment of $1350.00 per year. The work for the calculations must be shown.

3. Calculate the total interest paid on the mortgage from question #1 above. The work for the calculations must be shown.

4. You will now compare the difference between a 30-year and 15-year monthly payment. Calculate the monthly mortgage payment (principal and interest), but use a term of 15 years and the interest rate for a 15-year mortgage. The work for the calculations must be shown.