Suppose that the price of a home is $150,000.00 The bank requires a 10% down payment.

Part A) 30 year fixed-rate mortgage: 5% + 1 point

Part B) 15 year fixed-rate mortgage: 4.875% + 1 point

Use your Calculator and Show your Work for both parts A) and B) above on a separate sheet of paper:

1) Find the required down payment. 1,500

2) Find the amount of the mortgage.

3) How much must be paid at closing for 1 point?

4) Find the monthly payment (principal and interest only) excluding taxes and insurance.

5) Find the total amount paid over the life of the loan.

6) Find the total interest paid over the life of the loan.

7) How much will you pay for your home? Include down payment, point(s), and all monthly payments.

8) Do an amortization payment schedule detailing how much of payment goes toward the principal and how much goes toward interest. Your amortization table should be done for four months. (One schedule for part A and part B)

Use the Amortization Calculator provided in the link in this assignment.

Use the online calculator to calculate the following:

9) Enter the price of your home in the calculator.

Enter your down payment.

Enter 5% and 30 years Calculate your monthly payment and compare it to the answer that you calculated by hand in part A) above.

Print the online calculation of your mortgage payment

10) Enter the price of your home in the calculator.

Enter your down payment.

Enter 4.875% and 15 years Calculate your monthly payment and compare it to the answer that you calculated by hand in part B) above.