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You are planning to purchase a house that costs S480.000. You plan to put 20% down and borrow the remainder. Based on your credit score,

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You are planning to purchase a house that costs S480.000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.99% on a 30-year mortgage. 1. Use function "PMIT" to calculate your mortgage payment. 2. 3. Use function "RATE" to calculate the interest rate given a payment of $1500 and a loan amount 4. For each scenario, calculate the total interest that you will have paid once the mortgage is paid 5. For each scenario, calculate the total cost of the home purchase. (Down payment plus principle 6. Assume that you plan to pay an extra $300 per month on top of your mortgage payment, Use function "PV" to calculate the loan amount given a payment of $1500 per month. What is the most that you can borrow? of $400,000. of(There is not a function for this, enter the formula into the cell.) (loan amount) plus interest.) calculate how long it will take you to pay off the loan given the higher payment. (Use interest rate of 3.99%). Calculate how much interest you will pay in total? Compare this to the value that you calculated for #2. You want to determine whether or not you should save some of your money and put your house. Because you are only putting 10% down. only 10% down on lenders require that you purchase private insurance (PMI). Assume that PMI is 1% of the mortgage amount. 7. Calculate your total monthly payment (mortgage payment plus PMI) 8. Calculate the total cost of financing your home purchase (interest plus PMI) 9. Calculate the total cost of the home purchase. (Down payment plus principle loan amount) plus interest plus PMI.) 10. Compare this to the costs associated with a 20% down payment. Meme 1. Summarize the results of each of your calculations. the interest savings associated with an extra payment of $300 per month Compare the costs and benefits of a 10% down payment versus a 20% down Discuss Private Mortgage Insurance. What is it? Why do lenders require ir? What is the benefit to the borrower? 3. payment. 4

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