You consider the purchase of a new house and plan to use a mortgage to partially finance the transaction. The purchase price of the house is $635,000. To avoid mortgage insurance, you will pay 20% with your own savings and use a 20-year fixed rate mortgage for the balance. You believe you can lock in a mortgage rate of 4.2% (APR) and will make monthly mortgage payments, starting one month from now.

What is the monthly mortgage payment based on the terms of the loan?

How much will you have paid off of your house after the second mortgage payment?