You are ready to purchase a new home that sells for $352,000. You have been working hard and have accumulated a 20% down payment. You will borrow the remaining amount. The best mortgage rate you can find is a 30-year fixed rate of 6.697% annually.

(a) Determine the monthly mortgage payment. Mortgage payments are made at the end of each month. Note: The above mortgage rate is the annual rate. When computing the monthly interest rate do not round or truncate this number.

(b) Assemble a payoff schedule for the first four payments. Use a format similar to the following (this table shows payments 1, 2, 3, 359, and 360 for a 30 year $184,000 mortgage):

(c) What will be the total amount of all your mortgage payments after 30 years (i.e., the total of all 360 payments)?

(d) What is the total amount of interest you will pay over the 30 years?

(e) If you take out a 15 year mortgage (rather than 30 year mortgage) what will be your monthly mortgage payment?

(f) How much more or less interest will you pay in total (i.e., over the life of the mortgage) with a15 year mortgage compared with the 30 year mortgage?