You are considering 3 homes

Home 1- 200,000

Home 2 300,000

Home 3 400,000

Assume: Mortgage rates are 3.5% for 30 years and 2.875% for 15 years. You have $60,000 to put down and cannot pay more than $1,600 per month for total mortgage payment. You must pay PMI for loans with less than 20% down =$150.

Determine:

1. Which homes you can afford at the specific terms outlined above (15/30).
2. How long until you pay off 1/2 of you mortgage for home 3 under a 30 year term