Wally Bee purchased a new home for $250,000 with a $40,000 down payment. He financed the remainder with a 4% mortgage for 30 years. Use the Mortgage Tables attached! Please help explain how to get each answer!

A)What is his monthly payment?

$1002.54

$1089.66

$988.32

$946.31

B)If Wally had originally planned on using a 15 year mortgage (also at 4%), how much would Wally save in interest expense compared to the 30 year mortgage?

$81,308

$63,564

$72,658

$67,344

C) Come up with two month amortization schedule. (Round interest factor to 4decimals)What is the principal reduction for month 2?

Month Loan Balance Payment Interest Principal

0 ______________ ________ _________ ________

1 ______________ _________ _________ ________

2 ______________ _________ _________ ________

$401.65

$351.54

$388.21

$310.56

D)Wally's bank has offered to lower the 4% interest rate on his 30 year loan to 3.75% if Wally will pay 1 1/4 points.What will the points cost Wally?

$1895

$2625

$3155

$3365