A 25-Year Convention Mortgage. Mr. & Mrs. Alan Bell obtain a 25-year, $110,000 conventional mortgage at 10.5% on a house selling for $160,000. Their monthly mortgage payment, including principal and interest, is $1038.60. They also pay 2 points at closing.
a) Determine the total amount the Bells will pay for their house.
b) How much of the cost will be interest(including the two points)?
c) How much of the first payment on the mortgage is applied to the principal?