Your clients are purchasing a home for the first time. They are wanting to put 20% down and are the cost of the home they have their eye on is $427,389. They qualify for a 30-year mortgage, paid monthly, with an interest rate of 3.87%.

a. How much of the home will be financed?

b. What is the monthly payment of the loan?

c. All else equal, how much of the mortgage will be left after 3 years?

d. All else equal, how much total interest will they pay on this loan?