You are planning to purchase a house that costs $480,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage.

You want to determine whether you should only be 10% down on your house. Because you are only putting 10% down, lenders require that you purchase private mortgage insurance (PMI). Assume that PMI is 1% of the mortgage amount. Assume that you will pay PMI for 8 years in total (the assumption is that you will have 20% equity at that time so PMI will no longer be needed).

1. Calculate your total monthly payment (mortgage payment plus PMI).
2. Calculate the total cost of financing your home purchase (interest plus PMI). (remember that you only pay PMI for 8 years)
3. Calculate the total cost of the home purchase. (Down payment plus principal (loan amount) plus interest plus PMI.)

Please solve it in Excel.