You are looking to purchase your first home and have picked one out. The house costs $287,000.00, and you saved up 8% in cash and you will need to get a loan/mortgage for the remainder of the purchase price. You also need to get private mortgage insurance, which will cover 25% of your loan amount in the event of default. The PMI involves a 3.5% of loan premium due at closing, which will be added to the loan balance. The loan is an Adjustable-Rate mortgage with a fixed interest rate for the first 5 years, and then the rate then changes one time every 2 years thereafter on the anniversary of the loan, with a maximum interest rate increase of up to 2% per change. The underlying index for the loan is Wall Street Journal Prime and the rate is the index plus 1/2%. The loan 30 years amortization and a 30 -year term. Under these circumstances, answer the following questions. 1. Assume that the loan rate is 3.7% for the first 5 years. What is the mortgage payment due for first month? Use Excel to make it easier and the show your work. 2. What will be the loan's principal balance after the first 5 years? 3. If you were to default on your loan after the ninth month payment, what is the net loss of the bank if the house sold for $265,000 a month later and had closing costs of 9% of the sales price? Use Excel to make it easier and the show your work